The National Bureau of Statistics (NBS) has reported that the price of cooking gas in Nigeria has increased by 70.12% in May 2024. This rise has proved one of the most substantial price hikes in recent times, it is currently impacting household budgets across the entire country.
According to the NBS data, the average cost of refilling a 5kg cylinder of Liquefied Petroleum Gas (LPG) soared from approximately N4,500 in April to about N7,650 in May. The trend is attributed to various factors, including global market dynamics, domestic supply chain challenges, and the weakening of the Nigerian naira.
Global energy markets have experienced volatility due to ongoing geopolitical tensions and disruptions in supply chains, particularly in regions that are significant exporters of LPG. These international issues have exerted pressure on domestic prices, exacerbating the situation for Nigerian consumers.
Moreover, domestic supply constraints have played a crucial role. Infrastructure deficiencies, transportation bottlenecks, and limited local production capacities have all contributed to the price surge. The weakening naira further compounds the problem, making imports more expensive and pushing prices upward.
The NBS report highlights that the price increase has disproportionately affected low and middle-income households, who rely heavily on LPG for cooking. Many families are now struggling to cope with the higher costs, prompting calls for government intervention.
In response to the rising prices, consumer advocacy groups have urged the Nigerian government to take immediate steps to stabilize the situation. Recommendations include increasing domestic production, improving supply chain logistics, and exploring subsidies or financial assistance for vulnerable households.
The government has acknowledged the issue, with officials stating that they are exploring measures to mitigate the impact on consumers. However, concrete actions and timelines remain uncertain, leaving many Nigerians anxiously awaiting relief.
As the nation struggles with these economic challenges, the significant rise in cooking gas prices serves as a sharp reminder of the interconnected nature of global and domestic economic factors and their direct impact on everyday life.
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