Economy

Nigerians Pay More For Cooking Gas as Price Doubled in the Last 12 Months

On a year-on-year basis, the average retail price of cooking gas rose from N400 in August 2021 to N809 in August 2022

Published

1 year ago

September 21, 2022

On a year-on-year basis, the average retail price of cooking gas rose from N400 in August 2021 to N809 in August 2022. This represents an increase of 102.38 per cent in the period under review.

According to a report released by the National Bureau of Statistics (NBS), a kg of gas was sold for N789.75 in July 2022 and rose to N809.52 kobo in August 2022. This indicates an increase of 2.50 percent on a month-on-month basis.

The report also stated that gas was sold for different prices across states in Nigeria.

The highest average prices per litre in August were recorded in the states of Imo with N1083.33, Ekiti with N1,026.92 and Enugu with N1,017.74.

Meanwhile, Nasarawa state recorded the lowest price of gas per kg with N627.45 kobo. This was followed by River with N627.45 and Adamawa with N633.33.

In the zonal analysis, cooking gas was sold higher in the South East when compared to other zones. It was sold at the average retail price of N953.88 per kg. South-West followed with N910.85 per kg while the South-South recorded the lowest with N749.51.

Investors King learnt that many consumers are having difficulty adjusting to the high cost of cooking gas. They lament that the high cost of food and the increase in cooking gas are making life unbearable for them.

Analysts believed the increase in price is due to the scarcity of the commodity in Nigeria, a nation with vast gas reserves but limited infrastructure or technical know-how on gas processes.

Also, the wide foreign exchange rate between Nigerian Naira and its global counterparts is forcing many Nigeria’s gas producers to export their product instead selling in the local market.

In August, European Union Ambassador to Nigeria, Isopi, Nigeria is the fourth largest exporter of Gas to Euro-area due to the ongoing crisis in Ukraine, hence why he was in Nigeria to strengthen the economic relationship between Nigeria and Europe, particularly in the area of possible increase in the supplies of Liquefied Natural Gas (LNG).

He said “Nigeria is the fourth gas supplier to Europe. At least 40 per cent of the Nigerian LNG is currently exported to Europe. We are not only major clients for Nigeria, we are also major partners in the oil and gas sector because some of the companies that are working with you are from Europe. So we share the same interest and same objectives.”

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Economy

Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M

Published

2 days ago

December 8, 2023

Investors King

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

Economy

Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption

Published

3 days ago

December 7, 2023

Investors King

The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

Economy

Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion

Published

3 days ago

December 7, 2023

Investors King

The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.