The latest report from the National Bureau of Statistics (NBS) showed that the average price of cooking gas is on the rise.
The NBS, which involved more than 700 field officers to collect data on the current prices of different quantities of cooking gas, otherwise called liquefied petroleum gas, showed single-digit growth.
Despite the NNPC's assurances that it will help ease the cost burden of purchasing gas on Nigerians, the price appears to ignore any kind of government solution.
Report
- The average price for refilling a 5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) stood at ₦3708.58 in February 2022 showing a month-on-month increase of 1.39 percent from ₦3657.57 recorded in January 2022.
- On a year on year, the average retail price of Cooking Gas increased by 83.69 percent from ₦2018.91 in February 2021.
- Benue state recorded the highest average price for refilling of 5kg Cylinder for Liquefied Petroleum Gas (Cooking Gas) with ₦4205.00, followed by Niger with ₦4150.00 and Cross River with ₦4081.82.
- Adamawa state had the lowest average price with ₦2500.00 followed by Yobe and Bauchi with, ₦2610.00 and ₦2645.00 respectively.
- Prices analyzed by zones show that average retail price of Cooking Gas was highest in the North-Central with ₦3907.07 followed by South-East with ₦3938.00 and South-South with ₦3875.23, while the zone with the lowest average retail price was the North-East with ₦3219.75.
- The average price for the refilling of 12.5kg Cylinder for Liquefied Petroleum Gas (Cooking Gas) increased to ₦7447.79 in February 2022 from ₦7413.25 in January 2022 which represents 0.47 percent month on month increase.
- Similarly, on a year on year basis, the average retail price for refilling 12.5kg cooking gas increased by 70.68 percent from ₦4363.51 in February 2021.
- The state with the highest average price for the refilling of a 12.5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) was Osun with ₦8625.00 followed by Oyo with ₦8328.57 and Abuja, with ₦8295.00.
- While the state with the lowest average price for the refilling of a 12.5kg Cylinder for Liquefied Petroleum Gas (Cooking Gas) was Borno with ₦5913.33, followed by Yobe and Cross River with, ₦6643.91 and ₦6790.27 respectively.
- The average retail price of a 12.5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) by zones shows that average retail price was highest in the South-West with ₦7892.40 followed by the North-Central and North-West with ₦7657.22 and ₦7533.91 respectively.
- The South-South Zone recorded the lowest price with ₦7091.61.
Observation
Some energy analysts believe the price increase is the result of external shocks caused by the ongoing conflict between Russia and Ukraine, as Russia is the world's largest producer of natural gas.
As a result of the disruption in the supply chain, the global price of natural gas has risen.
The value-added tax on gas supply also contributes to the price disparity seen in the data above. Some states and zones charge a lower VAT on gas than others. For example, states with the highest rates of poverty, such as Borno, will have lower demand for gas cylinders because most people do not have the financial means to purchase gas.
They will prefer to cook their food with alternatives such as firewood, charcoal, and others.
0 Comment(s)