Categories: Commodities

Nigerians Struggle as Cooking Gas Prices Surge to Record Highs

Nigerians are grappling with an unprecedented surge in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, which has risen to N1,250 per kilogram.

This sharp rise, up from less than N500 per kilogram just five years ago, has sent shockwaves through households across the country, exacerbating an already dire economic situation.

For many Nigerians, cooking gas has become a symbol of the broader economic hardships plaguing the nation.

Families that once relied on LPG for their daily cooking needs are now faced with the harsh reality of either drastically adjusting their budgets or seeking alternative, less costly—and often more dangerous—methods of cooking.

“How can we cook?” lamented Tosin Adelakun, a Lagos resident juggling multiple jobs to support her family. “Everything is going up, but our salaries stay the same. Now, even cooking basic meals is becoming a luxury.”

This sentiment is echoed by many across Nigeria, where the average retail price for a 5 kg refill of cooking gas now stands at N6,966.03, according to data from the Nigeria Bureau of Statistics (NBS).

This marks a 71.23% increase from June 2023 alone, compounding the financial strain on households already stretched thin by rising food prices, fuel costs, and a depreciating naira.

The impact of the price hike has been immediate and severe. In urban areas like Lagos, where reliance on LPG is higher, many residents are turning to alternative cooking methods such as charcoal and firewood. While these options may seem like a temporary solution, they come with their own set of health risks.

“It’s becoming unbearable to cook with gas now,” said Osuji Chidinma, a businesswoman from the Iyana Iba area of Lagos. “We are now substituting with charcoal and firewood.”

However, this shift to traditional fuels is not without consequence. Health experts have long warned of the dangers associated with cooking with firewood and charcoal, particularly for women and children, who are most often exposed to the harmful smoke.

According to a 2021 report, more than 90,000 women and children in Nigeria die annually from illnesses related to cooking smoke. That number has now risen to 98,000, reflecting the growing reliance on these hazardous alternatives.

Emmanuel Uwandu, Managing Director and CEO of Gas360, highlighted the dire health implications: “Cooking with firewood and charcoal is equivalent to smoking 20 packages of cigarettes. For an average smoker, that is too much. But this is what women in Nigeria have to deal with daily.”

The root cause of the LPG price surge has been attributed largely to foreign exchange challenges, as the naira continues to struggle against the dollar.

Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), explained that the rising costs are tied directly to the FX market, where the naira’s devaluation has driven up the price of imported gas.

“The situation is very unfortunate,” Oladapo said. “Prices are going higher, and Nigerian consumers are passing through very difficult times because they can no longer afford gas and are now depending on firewood, charcoal, and sawdust for cooking.”

As Nigerians face these compounding challenges, there is a growing call for the government to intervene.

Oladapo has urged the government to address the underlying foreign exchange issues and alleviate the burden on consumers through palliative measures, such as reducing taxes and levies on cooking gas.

Moreover, there are calls for Nigeria LNG to prioritize domestic supply over exports to help stabilize prices.

“Nigeria LNG would have to look at catering to domestic needs above exportation to cushion the effects on the masses,” Oladapo added.

For now, the outlook remains bleak as Nigerians brace themselves for continued economic hardship, with no immediate relief in sight.

The soaring cost of cooking gas is just one more hurdle for a population already struggling to make ends meet.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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