In a concerning development for Nigerian households and businesses, the price of cooking gas has surged by 44.5% in just one year.

According to the National Bureau of Statistics (NBS), the price increase is being driven by rising importation costs, distribution challenges, and global energy price fluctuations.

This hike in cooking gas prices has placed additional strain on the budgets of Nigerian families, particularly as the country grapples with an already high cost of living.

Small businesses, including restaurants and food vendors, are also feeling the pinch, as the price of cooking gas is a key component of their operational expenses.

The Impact of Rising Cooking Gas Prices

The NBS report shows that the price of cooking gas has continued to climb, further affecting consumers who depend on it for cooking and heating. For many Nigerians, gas has become the preferred option for cooking due to its efficiency and affordability compared to other energy sources.

However, with the ongoing price increases, it’s no longer a cost-effective alternative for some households.

The rural-urban divide also adds to the challenge. In rural areas, where access to other energy sources is limited, the price hike in cooking gas could have a more severe impact on the daily lives of residents. In urban areas, although alternatives like kerosene and charcoal are available, cooking gas remains the most common choice.

Global Energy Prices and Local Factors

The rise in cooking gas prices can be partly attributed to global energy price trends. With oil and gas prices fluctuating, Nigeria, a major importer of cooking gas, faces higher importation costs. The Nigerian economy, heavily reliant on energy imports, is further burdened by the weakening of the Naira, which adds to the cost of foreign exchange for these imports.

Additionally, distribution challenges across the country’s vast network of roads and infrastructure continue to cause delays and increase costs for delivery. These local challenges, combined with global price factors, have compounded the problem, leading to the rapid increase in gas prices.

The Government’s Response

While the government and energy regulators have acknowledged the rise in prices, there has been limited short-term relief for consumers. Analysts suggest that in the absence of significant government intervention, such as subsidies or price control measures, the cost of cooking gas will likely continue to rise. 

The Nigerian government has historically made attempts to mitigate energy price increases through subsidies, but these measures have not always been effective or sustainable in the long run.

For now, Nigerians are left to manage the rising cost of cooking gas, either by seeking alternatives or adjusting their household budgets to cope with the increase.