Marketers Warn: Cooking Gas Price Set to Swell.

Gas consumers in Nigeria are poised to encounter challenging times ahead, as indications from gas marketers point towards an imminent surge in prices set to take effect next week.

Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers, issued a candid warning, urging gas consumers to prepare for an uptick in prices.

Oladapo outlined various factors contributing to this anticipated price hike, including escalating international fees, elevated tax rates, increased vessel costs, forex scarcity, and the devaluation of the national currency.

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Elaborating on the circumstances prompting the impending price review, Oladapo explained, “The increase is scheduled to begin next week due to the upward trajectory of international prices. The costs associated with vessels have risen, coupled with high taxes. This is occurring at a time when consumers’ earnings have not seen a corresponding increase.”

“The erosion of purchasing power is evident, and the repercussions are being felt across the board. Consumers, intermediaries, and retailers are grappling with the repercussions as business activities wane,” Oladapo emphasized.

Regrettably, Oladapo characterized the impending price escalation as an unfortunate development. He underscored the broader context, stating, “This situation is profoundly disheartening as prices continue their ascent.

Nigerian consumers find themselves in an increasingly challenging predicament, as the affordability of gas becomes more elusive.”

Due to these escalating costs, Oladapo noted a concerning trend where consumers are reverting to traditional alternatives such as firewood, charcoal, and sawdust for cooking purposes.

In light of these challenges, Oladapo appealed to the government for intervention to mitigate the hardships faced by the populace.

He called for implementing measures such as palliative support, tax and levy reductions, and a shift from taxing products to taxing profits. He argued that local taxes exacerbate the crisis, stressing that a more compassionate approach towards consumers is imperative.

The warning from Oladapo comes amidst findings by a publication indicating that the scarcity of vessels in the international market is poised to elevate local prices of Liquified Natural Gas (LPG), commonly referred to as cooking gas, in the forthcoming months.

Vessel scarcity has triggered a surge in charter rates, particularly in anticipation of the heightened demand for heating fuel during the winter of 2023. Charter rates have skyrocketed to unprecedented levels, with data indicating quadrupled prices for chartering compared to recent periods.

This scarcity of tanker supplies is attributed to traders using ships as floating storage in anticipation of a rise in LNG prices during colder weather. The ripple effects of volatile shipping rates extend to higher prices for buyers, reflecting the interconnectedness of global market dynamics.

The impending surge in gas prices underscores the intricate connection between international market fluctuations, local currency devaluation, and the resultant impact on the affordability of essential commodities for Nigerian consumers. As the nation grapples with these complexities, the populace eagerly awaits to see how authorities respond to the mounting challenges.

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