Top 10 Causes of High Cooking Gas Price in Nigeria


Top 10 Causes of High Cooking Gas Price in Nigeria

We cook with firewood and charcoal in our communities and villages. Many Nigerians are now required to use cooking gas because of modernity. However, the cost of cooking gas has increased to an unaffordable level. In order to determine the root of Nigeria's high cooking gas prices, we will examine 10 potential causes.

The top ten reasons for the high cost of cooking gas in Nigeria are, exchange rates abroad, Control of prices, the value-added tax, Strong Demand, A shortage, Middle Age Men, Product imported, a lackluster leadership style, Production that is done locally, Kerosene cost etc.

Nigerians are facing many challenges, including insecurity and a difficult economic situation caused by high inflation. An anxious nightmare with rising prices…

The rising rate of change and events in the international market may lead to an increase in the price of cooking gas, according to the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM).

Nigerians are facing many challenges, including insecurity and a difficult economic situation caused by high inflation. A shocker is the rise in the price of LPG, commonly known as cooking gas, which has been on the lips of households and business owners for the past year.

Inflation has affected many Nigerians in three main ways, which are outlined below:

Increase in the price of cooked food

The continuous increase in the cost of cooking gas that many restaurants across the country use for cooking has caused the cost of food to increase proportionally or change in the number of customers. give. Retailers came up with this solution to solve the financial problem of high cooking gas prices. Retailers and consumers, in particular, are facing higher food prices, higher fuel prices. Meals offered at certain prices have been significantly reduced in many restaurants, while in others, guide prices have gone up.

Another way of cooking

Many families and business owners must look to alternative cooking methods, such as using firewood, charcoal and sawdust, to survive the high cost of cooking gas. Since the price of these materials is still lower than gas and serves the same purpose, there is an increasing demand for them, including coal and firewood.

Health challenges of cooking with charcoal and wood

Another source of energy that Nigerians see in wood and dirt is not of much consequence. Energy sources such as wood not only pollute the environment and exacerbate climate change problems, but they also pose serious health problems for workers. Even though Nigeria ratified the Paris Agreement on climate change in 2017, the country still faces the challenges of women and children suffering from the constant use of firewood and charcoal.

The International Center for Energy, Environment and Development (ICEED) said 93,000 Nigerians die every year from smoke inhalation while cooking with firewood, while women and children are particularly vulnerable.


Here are Top 10 Causes of High Cooking Gas Price in Nigeria

Top 10 Causes of High Cooking Gas Price in Nigeria

1. Currency Exchange Rate

Nigeria is not the country that produces the cooking gas used there. As a result, the cost is not decided locally. Given that it is a foreign product, its price is set globally. Therefore, currency exchange is involved. The dollar is now much more valuable than the naira due to the recent devaluation of the naira. As a result, a lot of Nigerian Naira is used to purchase items that were initially purchased at a discount. High cooking gas prices have several causes.


2. VAT, or Value-added Tax

Additionally, the federal government makes things worse. The federal government reinstated the value-added tax that was previously removed from imports into Nigeria. The cost of cooking gas must now increase as a result of the tax being added to the regular price.

3.  High Demand

Cooking is done with firewood in the villages. The world is full of firewood. It is retrieved from the nearby forest and bushes. In the township, the circumstances are different. The type of buildings in cities prohibits the use of firewood. As a result, cooking gas is used frequently in cities. Due to the large number of people moving to cities every day, there is a high demand for cooking gas. Price increases are inevitable when there is a high demand. even to the point of necessity. Whatever the price, people must need it.

In addition, it is difficult to find firewood in cities. Therefore, it is very challenging for those who live in cities to avoid purchasing cooking gas at all costs. The alternative of using electricity to cook is off limits. Nigerian electricity is not a reliable source for anyone. As a result, city dwellers are dependent on cooking gas. As a result, the price is now very high.


4.  Price Restraint

In Nigeria, no one has any influence over the cost of cooking gas. As a result, different parts of Nigeria have different cooking gas prices.  Therefore, a person who has invested a lot of money in importing cooking gas would like to recoup his costs while still making money. Nigerians will always want to take advantage of others because that is who they are. The profit they hope to make will be worth twice as much as what they had invested. Consequently, Nigeria must charge more for cooking gas than other nations do. This is the main cause of the high cost of cooking gas in Nigeria. In addition, no one is present to check the price. Any price is acceptable for its sale.


5. Short Supply

Price will be low when supply exceeds demand. However, prices must increase when supply is less than demand. In Nigeria, the demand for cooking gas is much higher than the supply. The cooking gas has the benefit of not turning pots black. Because of this, even those who would have used firewood to cook now prefer to use gas. Because cooking gas is so expensive, many people continue to cook with firewood. Therefore, until the supply of cooking gas in Nigeria outpaces the demand, the price of cooking gas in Nigeria will remain high.


6. Imported Product

Nigeria uses a foreign-made product for cooking gas. It is delivered to Nigeria. There is a lot of money at stake.

The price of cooking gas must be high, just like all other imported goods. Foreign goods are always more expensive than goods made nearby.


7. Cost of Kerosene

The closest substitute for cooking gas is expensive; it is called kerosene.

Nigerians are extremely cunning. They are adept at punishing others. The price will remain high as long as the substitute price is high to prevent customers from switching to a competing brand.


8. Poor Leadership

Nigeria's leadership is lacking. The led are not a priority for Nigerian leaders. They are only aware of themselves.

These leaders don't give a damn about anyone as long as they have the cash to buy cooking gas. They'll consistently permit the cost to rise.

In Nigeria, no ordinary person has any control over commodity prices. The decision can only be made by the leaders. The cost of cooking gas in Nigeria will decrease if the price is controlled. There is no doubt about anything. In Nigeria, conditions are generally difficult. Concerning this, many people cry. The leaders, however, have no interest in controlling any aspect of price.

Several Nigerians no longer consume beans. Many Nigerians cannot currently afford the price of the beans. The cost of cooking gas is making things worse for the average person, so is the gas that will be used to cook it.

The negative change that the leaders promised Nigerians has already occurred. The leaders that Nigerians elected today are widely regretted by the populace. These politicians are only concerned with themselves, not the people who elected them. Cooking gas in Nigeria will keep getting more expensive unless something is done to lower the price. Only the leaders are able to change the price if it is possible.

You can now see the issue. The naira has lost value. Return of VAT occurs concurrently. The result is currently a high price on imported cooking gas, which begs the question of how these two things can combine for the average person. You can see that the leadership has a significant impact on Nigeria's high cooking gas prices.


9. Produced Locally

Petroleum, which is easily accessible in Nigeria, is converted into cooking gas. However, the product must be imported because there are no plants in the country that can produce it. Nigeria uses imported cooking gas as its primary fuel source. It's produced abroad. Cooking gas is not produced in Nigeria, which is why it is so expensive there.

The leadership may also be useful in this situation. The cost of cooking gas in Nigeria will decrease if the refineries are put to use. If not, the price of the item will keep going up.


10. Too Much of Middle Men

Since the cooking gas produced for Nigeria comes from abroad, middlemen will always get their way. Before it reaches the final consumer in Nigeria, cooking gas travels through a number of people. These middlemen raise the cost of the product at the dollar-to-naira exchange rate.


Final thought

The dollar's high value is the primary factor driving up the cost of cooking gas in Nigeria, in short. Its high cost is a result of the lack of price regulation. Value-added tax, a lack of supply, high demand for the product, and ineffective management all contribute to the price being high.

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