By Basanya Sulaimon (Siwes student, Efon Poly)
Despite Federal Government efforts to boost supply, there’s a decline in the demand for Liquefied Petroleum Gas (cooking gas), attributed to the low income and poor purchasing power of consumers, as expressed by gas retailers.
Inflation-driven price hikes have led consumers to purchase smaller gas quantities, with many opting for 5kg or 6kg cylinders, complemented by alternative cooking methods like kerosene and charcoal, according to sellers in Isolo and Oke-Afa.
Market analysis indicates that 12.5kg cylinder prices range between N11,000-N12,000. Dapo Olatunbosun, President of the Nigerian Association of Petroleum and Gas Marketers, noted that although local supplies have stabilized, consumers’ reduced purchasing power affects the expected demand for cooking gas.
A report reveals the Nigerian Liquefied Natural Gas Limited’s plan to shut down its plant in Finima, Bonny Island, for routine maintenance in February or March 2024.
In October, middlemen raised prices by 66%, prompting an emergency meeting with the Nigerian Midstream and Downstream Petroleum Regulatory Authority, following outcry from gas retailers.
Depot owners attribute the sharp price increase to foreign exchange depreciation and global market trends.
The government’s intervention aims to restore market sanity, with expectations of a price drop in the coming weeks, mitigating the projected December peak of N18,000.
Olatunbosun emphasized the government’s awareness that consumers are closely monitoring pricing practices.
