Cooking Gas Becomes Cheaper With Boost In Supply (See New Price)

Cooking Gas Becomes Cheaper With Boost In Supply (See New Price)

As the supply of liquified petroleum gas (LPG), commonly known as cooking gas, improves across Nigeria, prices have experienced a significant decline. Market reports indicate that dealers have slashed the price of LPG to ₦900 per kilogramme, down from ₦1,300 just weeks ago……READ ALSO Price Of Refilling Cooking Gas per kg In Nigeria Today

This price reduction comes as a welcome relief to consumers who have been grappling with high energy costs. LPG dealers attribute the drop in prices to improved supplies from various depots and the relative availability of foreign exchange for importation.

Speaking on the matter, a manager at Gasland depot in the Iju-Ishaga area of Lagos revealed that the price reduction also followed the Nigerian government’s decision to remove value-added tax (VAT) from the product. This combination of factors has contributed to a significant decrease in the cost of cooking gas for consumers.

Previously, the product was sold at ₦1,300 per kilogramme, but the recent price adjustment has seen it drop to ₦900. Additionally, the price of a 12.5kg cylinder has decreased from ₦14,300 to approximately ₦10,000.

While the drop in cooking gas prices is a positive development for consumers, concerns have been raised about the broader economic impact of government interventions in the food market. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), highlighted the role of bulk purchases of foodstuffs for palliative distribution in exacerbating the food inflation crisis.

During the March Monetary Policy Committee (MPC) meeting, Cardoso expressed concerns about the inflationary impact of these government purchases. Despite efforts to combat rising inflation, including an increase in the benchmark interest rate to 24.75%, the national inflation rate soared to 33.2% in March.

The spike in food prices can be attributed to various factors, including the elimination of fuel subsidies by the Federal Government. This decision prompted the allocation of ₦5 billion to each state and the Federal Capital Territory for food purchases intended for the economically vulnerable.

While these interventions aim to alleviate food insecurity, they have inadvertently contributed to inflationary pressures. Cardoso emphasized the need for a combined fiscal and monetary strategy to address the structural factors driving inflation effectively.

In conclusion, while the drop in cooking gas prices brings relief to consumers, it is essential to address the broader economic challenges, particularly the food inflation crisis. A coordinated approach involving both fiscal and monetary measures is necessary to mitigate the impact of government interventions on inflation and ensure sustainable economic stability.

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