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
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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