The price of cooking gas in Nigeria experienced a sharp increase of 69% in August 2024, exacerbating the financial strain on households already grappling with rising living costs. This surge reflects the ongoing volatility in the country’s energy sector, driven by factors such as global oil price fluctuations and supply chain disruptions.
According to data from the National Bureau of Statistics (NBS), the average price for a 12.5kg cylinder of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, rose significantly over the past year. In August 2023, the average cost was N8,145, but by August 2024, this figure had jumped to N13,740, marking a steep year-on-year price hike.
Economic analysts have pointed to several causes for this cooking gas price increase. Global energy markets have been volatile, and Nigeria’s dependency on imported LPG leaves it vulnerable to international price swings. Additionally, domestic challenges, such as distribution inefficiencies and the weakening naira, have contributed to the upward pressure on cooking gas prices.
The rise in cooking gas prices is part of a broader trend of inflationary pressures across Nigeria, with many essential goods and services becoming more expensive. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, noted that households are feeling the brunt of this increase, particularly in urban areas where LPG is widely used.
Government efforts to mitigate the cooking gas price increase have so far been insufficient. Calls for improved domestic gas production and better energy policies are growing louder, as the rising cost of LPG threatens to push more Nigerians into energy poverty. Without a strategic intervention, the situation could worsen, further straining household budgets and exacerbating inflation in the broader economy.
Discover more from Destkelamedia
Subscribe to get the latest posts sent to your email.