1 month ago
21 ARTICLE AD
The hike in the price of Liquefied Petroleum Gas―also known as cooking gas —from N700/kilogramme in June 2023, a month after President Bola Tinubu assumed office to N1,500/kilogramme in October 2024, is one that should call for urgent and strategic actions from the Federal Government.
The price increase is tied to the current foreign exchange rate which has made it difficult for importers to access the necessary funds. Furthermore, the devaluation and floating of the naira under the Tinubu administration have caused the currency’s value to plummet. The naira, which traded at less than N700 to the dollar in May 2023, has now fallen to around N1,700 to the dollar.
Despite being a major oil-producing country, Nigeria still relies heavily on imports for its LPG supply. On Tuesday, the Federal Government announced that it had stopped the export of locally produced cooking gas to prioritise domestic supply.
This measure, according to the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, will commence on November 1, in a bid to address the high gas price in the country. This decision was said to have been reached after the minister convened a high-level meeting in Abuja with stakeholders to tackle the skyrocketing price and its attendant hardship on Nigerians.
In August, Ekpo promised to ensure a reduction in the rising cost of a kilogramme of cooking gas. He said this would be achieved through an appeal to regulators and gas producers to find ways to bring down the gas price. Unfortunately, the price of cooking gas has risen even further. Like other indicators of economic hardship, the soaring price of cooking gas will only worsen the suffering of citizens.
Notably, the Managing Director of Nigerian Independent Petroleum Company, Suresh Kumar, revealed that over 60 per cent of the cooking gas consumed in the country is imported. This is a consequence of the gross failure of the government and the Nigerian National Petroleum Company to invest in production facilities which would have boosted the oil and gas sector.
Unbelievably, Nigeria has the 10th largest gas reserves globally with an estimated 208 trillion cubic feet of proven gas reserves, according to the NNPC. Nigeria should not have to rely significantly on importing gas. Sadly, the local production of LPG remains inadequate.
Cooking gas is important to many citizens who utilise it as a readily accessible source of domestic energy. Tragically, the lack of vision, action, and responsibility on the path of the government and stakeholders in the oil and gas sector has led to a shortfall and is about to take cooking gas out of the reach of the perennially battered populace. This should not be allowed to continue.
Tinubu needs to make Nigeria liveable for the populace. The government should do everything possible to reduce the price of cooking gas otherwise this may push citizens who are already struggling under the crumbling weight of economic hardship over the edge.
Apart from that, many households may resort to cooking with dirty fuels such as firewood, charcoal, and sawdust. This, of course, is a silent killer. According to the World Health Organisation’s latest data, about 3.8 million people die each year from illnesses, including pneumonia and lung cancer, linked to household air pollution from cooking with dirty fuels. Women and children are said to be the most affected.
The Federal Government should encourage the conversion of more propane output into propane. The government must give deliberate and massive incentives. There should also be a push to invest in cooking gas production to match the increasing demand. Until Nigeria starts producing more gas, the price will continue to increase.
