Federal government has shown concern over the high cost of cooking gas in Nigeria and has formed a committee tasked to tackle the increment in cooking Gas price within a week and addressing supply challenges.
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The intervention comes in response to the recent increase in the price of LGP per kilo, rising from about 700NGN to over 900NGN, 1000NGN in some areas, and exceeding 1200NGN per kilo in some states.
The Minister of state Petroleum Resources (SPR), EKPERIKPE EKPO has intervened in the situation surrounding the supply and pricing of Liquefied Petroleum Gas [LPG], widely known as cooking gas in the local/domestic market.
Key challenges contributing to the surge in LPG prices.
* FX sourcing for imports and insufficient supply to the domestic market by producers.
*Infrastructure Deficit: The Nigerian LPG industry faces significant challenges related to infrastructure, including inadequate storage and distribution facilities. Insufficient infrastructure limits the country's capacity for large-scale production and affects the accessibility and affordability of LPG for consumers.
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*The surge in LPG prices can be attributed to two primary factors: Inadequate investments in natural gas exploration within the country. A significant reduction in the production of associated gas, which is derived from crude oil exploration, due to rampant crude oil theft.
*On the two contemporary issues that have also contributed to the current price rise, he said: “This present crisis is caused by the devaluation of the naira and inability of the suppliers, especially the Nigeria Liquefied Natural Gas, NLNG, at Bonny in Rivers State to meet up with local demand as well as the inability .
* The is also caused by hiking by retailers or private gas filling sectors
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LPG consumption drops as prices continue to rise by 12%
From my own view: firstly this is caused by greediness from Nigerians Not only Government has hand in this increment we the citizen has caused this upon ourselves also. Everyday lots of importation is done every hour.
For instance;
Overall Exports and Imports for Nigeria 2021
The total value of exports (FOB) is US$ 47,232 million. The total value of imports (CIF) is US$ 52,068 million.
Overall Exports and Imports for Nigeria 2022
In the fourth quarter of 2022, Nigeria's total trade stood at N11,722.44 billion of which total exports stood at N6,359.61 billion and total imports amounted to N5,362.83 billion.
Overall Exports and Imports for Nigeria 2023
In the second quarter of 2023, Nigeria's total trade stood at N12,741.96 billion, total exports stood at N7,015.71 billion and total imports amounted to N5,726.25 billion.
Imports The top imports of Nigeria are Refined Petroleum ($11.3B), Wheat ($3.32B), Cars ($2.42B), Packaged Medicaments ($972M), and Broadcasting Equipment ($934M), importing mostly from China ($21.9B), India ($4.75B), Netherlands ($4.58B), United States ($4.42B), and Belgium ($2.34B).
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