Cooking Gas Price Increment

Through out last year, one of the most notable things that kept occuring was the continuous and consistent increase in the price of Liquefied petroleum gas or popularly known as Cooking Gas.

This issue forced so many consumers of cooking gas to find cheaper alternatives such as charcoal and firewood due to the alarming rate of the persistent hike in price.

During the course of the year 2021, precisely between the month of January and October, there was over 240 percent increase in price. For example, the 12.5kg gas cylinder moves from around ₦3,000 to ₦10,200 within the first ten months of 2021.

Just on Thursday, the Federal Government stated that it was putting in measures to ensure that the prices of cooking gas goes further down in 2022. According to findings, the price of 12.5kg of cooking gas has dropped from ₦8,800 to between ₦8,400 and ₦8,200. In some outlets, the price of the commodity dropped to between ₦7,800 and ₦8,000 as of Thursday.

The Vice President of the National LPG expansion implementation plan, Dayo Adeshina stated that, "It is in the government’s best interest for the price to go down consistently and there are certain initiatives that are being taken at the moment, which hopefully will see to further drops in price regardless of the international cost."

According to him, one of the initiatives to be taken by the government is the issue of storage. About 65 per cent of the LPG is imported into Nigeria, while domestic production accounts for 35 per cent, hence the cost of the commodity in the global market affects the price locally.

So because most of the Cooking Gas used is imported, it means that the international price will have a very great effect on the price of Cooking Gas in the country, the price is always going to fluctuate and coupled with the taxes enforced on importers that caused some to stop importing, thereby decreasing the supply of Cooking Gas.

Since the government has refused to improve the gas production sector of the economy, they should reduce or totally remove the value added taxes (VAT) that is obviously affecting the price of the Liquefied petroleum gas.

In the end, all everyone is seeing is suffering and more unnecessary and unplanned expenses. The average earners and the students are being affected more. Their salaries and little allowances are not being increased in any way so all they go through is one way of suffering or the other because the money is never always enough.

Anyway the Federal Government has once again made a promise to reduce the cost of Cooking Gas in the nation, let's see how effective their plans to carry this out are.

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