Gas consumers in Nigeria are bracing for tougher times ahead as gas marketers have indicated that prices are expected to increase in the coming week. Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, has cited several reasons for the anticipated price hike, including rising international prices, high tax rates, vessel prices, forex scarcity, and naira devaluation.
The expected price increase is due to various factors, including rising international prices, increased vessel costs, higher taxes, and forex scarcity. Oladapo noted that despite the escalating costs, consumers are not earning more, resulting in reduced purchasing power and economic challenges.
He emphasized that the imminent price increment is unfortunate and described the situation as worrying, given that prices are escalating. Consumers, middlemen, and retailers are all feeling the negative impact due to the challenging business environment.
Oladapo suggested that the government should intervene to alleviate the burden on consumers. He proposed measures such as reducing taxes and levies, as well as providing palliatives to help mitigate the challenges faced by gas consumers.
The current situation has led to consumers exploring alternatives such as firewood, charcoal, and sawdust for cooking, which poses environmental concerns. Oladapo expressed concern that the taxes imposed on gas businesses are exacerbating the problem, and he urged the government to consider taxing profits rather than products.
The issue of vessel scarcity in the international market has also contributed to the projected rise in local prices of Liquified Natural Gas, commonly known as cooking gas. Vessel shortages have led to increased charter rates, impacting the cost of transporting gas. As a result, gas prices are expected to rise, further burdening consumers.
The expected rise in cooking gas prices underscores the challenges that Nigeria faces in maintaining stable energy prices while considering global market dynamics. Consumers are likely to face increasing difficulty in accessing affordable cooking gas, potentially impacting their daily lives and expenses.