The President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, has provided insights into an impending increase in the price of cooking gas, slated to take effect from the following week. This announcement comes in response to a series of interconnected factors that have led to the decision to revise the pricing of cooking gas.
As reported by Punch, Oladapo pointed out several crucial reasons behind this impending price adjustment. The primary factor is the surge in international prices for Liquefied Petroleum Gas (LPG), which has had a cascading effect on the local market. This global increase in prices has set off a chain reaction, causing a ripple effect on the supply chain and pricing structure within Nigeria.
Moreover, Oladapo mentioned other contributing elements that have collectively driven this decision. The high tax rates imposed on the LPG industry, coupled with the elevated prices of vessels necessary for transportation, have presented significant challenges for the industry’s stakeholders. Additionally, the prevailing scarcity of foreign exchange (forex) and the devaluation of the national currency, the naira, have further compounded the economic strain on the sector.
Oladapo expressed his concerns over the adverse impact of these factors on various segments of society. He highlighted the dwindling purchasing power of consumers, who are grappling with the compounding effects of rising prices amidst stagnant or decreasing income levels. This situation has created a palpable sense of distress, affecting consumers, middlemen, and retailers alike, thereby resulting in reduced business activities.
The President of the Nigerian Association of Liquefied Petroleum Gas Marketers lamented the unfortunate necessity of this impending price increment. He empathized with the challenges faced by Nigerian consumers, who are now confronted with the harsh reality of potentially unaffordable gas prices. To this end, he underscored the gravity of the situation by pointing out that consumers are being compelled to revert to traditional cooking methods, such as firewood, charcoal, and sawdust, in a bid to cope with the escalating costs.
In light of these circumstances, Oladapo called upon the government to intervene and alleviate the burden on the populace. He proposed a series of measures that could potentially ease the strain, including the provision of palliatives, reductions in taxes and levies, and a shift towards taxing profits instead of products. He emphasized that local taxes have exacerbated the challenges faced by the industry, and urged fellow marketers who have access to local supply sources to consider pricing structures that take consumers’ financial constraints into account.
the impending price hike for cooking gas in Nigeria, as highlighted by Olatunbosun Oladapo, is a complex issue stemming from various economic factors. The situation not only impacts the cost of living for consumers but also presents challenges for businesses across the LPG supply chain. While the decision to increase prices is a response to external pressures, the call for government intervention to mitigate the impact on the masses remains a prominent aspect of this ongoing discourse.