NBS Reports Significant Year-on-Year Increase in Cooking Gas Prices and Petrol Prices
According to a report from the National Bureau of Statistics (NBS), the average price of 5kg of cooking gas rose by 22.03% year-on-year (YoY) to N4,610.48 in February 2023, compared to N3,778.30 in the same period of 2022. This news comes amidst the average retail price of a liter of petrol increasing YoY by 43.62% to N264.29 in March 2023 from N185.30 in March 2022.
The NBS Cooking Gas Price Watch for March 2022 further revealed that on a month-on-month (MoM) basis, the price of 5kg of cooking gas slightly increased by 0.22% to N4,610.48 in March 2023 from N4,600.57 in February 2023. This increase in cooking gas prices will likely impact consumers’ ability to afford this essential household commodity, especially for those in lower-income brackets.
The report further indicates that the surge in petrol prices will also have significant implications for consumers as transportation costs increase. The increase in petrol prices could also cause a ripple effect on other consumer goods and services, thereby contributing to a rise in the cost of living.
Overall, the NBS report highlights the growing concern about the rising cost of living in Nigeria and the need for the government to address the underlying causes of these price increases to ensure that Nigerians can afford essential commodities.
The report showed that Kwara State recorded the highest average price for refilling a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) with N4,962.87, followed by Abuja with N4,940.00 and Adamawa with N4,915.00.
On the other hand, Rivers recorded the lowest price with N4,204.45, followed by Abia and Anambra with N4,220.15 and N4,232.75 respectively.
Meanwhile, operators have attributed the rise in the price of cooking gas to fluctuations in the exchange rate, multiple taxes, and scarcity of foreign exchange.
The Executive Secretary, of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr. Bassey Essein, said: “The source of LPG for some time now has been predominantly from Nigeria LNG and has never met the demands. This is because of the supply-demand gap and market dynamics. All these work in concert to affect the price. Hence, the price goes up. Similarly, NALPGAM President, Mr. Oladapo Olatunbosun, called on the government to provide more incentives to encourage exploration, adding that foreign and local investors could be encouraged to explore and invest in the gas business.
He said: “The nation has the required storage facilities, but needs to do more on exploration. The price is coming down gradually. The only solution to bring prices down significantly is to improve supply.
“As a country, we should plan for an increase in the local supply through exploration. We need more big plants like Nigerian Liquefied Natural Gas (NLNG) to boost supply, and then the price would come down.”
