Spiralling Cooking Gas Prices Could Reach N18,000 by December, Warn UK Retailers

As the cost of living continues to increase, UK retailers are raising concerns about another pressing issue; the skyrocketing cost of cooking gas. Industry insiders warn that unless government intervention occurs soon, a 12.5kg cooking gas cylinder could cost up to N18,000 by December.

Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, has been vocal about the issue. He identifies escalating terminal rates as the primary reason behind the soaring retail prices. He notes that the costs for liquefied petroleum gas (LPG) at the terminals have surged from around ₦9–10 million per 20 metric tonnes to an astounding ₦14 million per 20 metric tonnes.

Oladapo contends that terminal owners are taking advantage of high foreign exchange rates to unjustifiably hike prices. He further states that this is causing significant financial strain on the public and is especially concerning given that supplies from the Nigerian Liquefied Natural Gas Limited (NLNG) have remained stable. Oladapo also adds that both NLNG and terminal owners are responsible for the spike in prices, even as the NLNG has also increased its rates recently.

Implications for the Public

The consequences of such price hikes are dire, according to Oladapo. He warns that these rising costs could force the public to resort to less sustainable fuel options like firewood and charcoal for cooking. He expresses disappointment in the government’s lack of immediate action, especially after recent talks aimed at improving general living conditions.

Spokespeople from the gas terminal industry, representing companies like NavGas and Nipco Plc, argue that the price hikes are a result of market forces, such as fluctuations in foreign exchange rates and shifts in the international crude oil market.

As the cost of cooking gas continues to rise, accessibility for the average UK citizen is becoming a significant concern. With families across the nation left with fewer and less sustainable cooking options, this poses a considerable challenge that urgently requires attention.

FAQs

What’s driving the soaring cooking gas prices?
The key factors are escalating terminal costs, capitalisation on high foreign exchange rates by terminal owners, and increased rates by NLNG.

What actions is the government taking?
There is no official action from the government yet to regulate the soaring prices.

What alternatives do consumers have for cooking?
People may be forced to revert to using firewood or charcoal, which have significant environmental drawbacks.

Could this economic factor have broader implications?
Absolutely, the rising cost of essential commodities like cooking gas could contribute to inflation and worsen the quality of life for average citizens.

What’s the projection for the coming months?
Without governmental intervention, the price for a 12.5kg cooking gas cylinder could reach N18,000 by December.