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Amid high food inflation, gas supply costs rise and kerosene prices rise | The Guardian Nigeria News

By on December 21, 2021 0

… Cooking gas increased by 78% in one year, kerosene by 24.81%

Despite high food inflation in the country, Nigerians continued to face rising costs of preparing meals at home or from commercial food vendors, based on the latest gas and kerosene prices.

In the absence of a steady supply of electricity, liquefied petroleum gas (LPG) and kerosene are the main sources of cooking fuel for many Nigerians, but rising costs have pushed a growing percentage of households to relocate. turn to firewood and sawdust.

The 2019 Expenditure Structure Report, which measures Nigeria’s expenditure structure on food and non-food items, found that out of the total, 56.65% of household expenditure in 2019 was on food, the balance of about 43.35 being devoted to non-food expenditure. foodstuffs.

With high food inflation and rising cooking fuel costs, the amount spent on food is expected to have doubled, pushing many households into poverty and hunger.

Marketers note that the shortage in the local market is caused by insufficient supply, as many gas-producing companies prefer to export rather than supply the domestic market due to price parity.

Currently, Nigeria’s domestic LPG market obtains 60 percent of the products imported by traders, while a meager 40 percent is supplied locally.

Although Nigeria’s inflation rate fell for the eighth consecutive month in November to 15.40% from 15.99% recorded a month earlier, the prices of foodstuffs, as well as the prices of gas, liquid fuels , air and road transport costs continued to increase.

Indeed, the latest data released by the National Bureau of Statistics (NBS) confirmed concerns about the rising costs of liquefied petroleum gas, also known as cooking gas, as the average cost of purchasing d A 12.5kg cooking gas cylinder in Nigeria increased by 78.99 per person. cent on an annual basis from a lower cost of N 4,082.97.

In November 2021, the average product price was N 7,308.06, an increase of 10.09% month over month compared to a lower cost of N 6,638.27 in the previous month of October 2021.

For kerosene, the cost of purchasing the product increased 4.17 percent in November to N 441.06 per liter. According to NBS, the average amount paid by Nigerians in November 2021 is also a 24.81% increase over the N353.38 in product cost in November 2020.

In terms of price changes by area, the highest price was recorded in the southeast at N 541.19, followed by the southwest and north-central recorded at N 470.79 and N 444.97. respectively. The northwest area had the lowest price at N 363.98 compared to the other areas.

A quick look at the data shows that the price has risen to its highest level in over two years. Specifically, a 12.5 kg cylinder of home cooking gas hit its highest level since November 2018.

The average cost for consumers to fill a 5kg cooking gas cylinder increased 26.05% month over month, from N 2,627.94 in October to N 3,312.42 in November 2021.

The average price of the product per 5 kg increased by 70.09% year on year, from N 1,947.47 in November of last year to N 3,312.42 in November of this year.

For 25 kg of gas, the top three states with the highest prices in November 2021 were Ondo, Oyo and Osun with N8,721.43, N8,648.33 and N 8,431.25 respectively.

Conversely, the lowest average prices were recorded in Borno State, Yobe State and Nasarawa State with N 5,413.33 and N 6,300.00 and N6,390.63 respectively. NOT.

For 5 kg gas, the states with the highest prices in November 2021 were Edo, Cross River and Ebonyi / Jigawa with N 3,970.00, N 3,933.33 and N 3,820.00 respectively, while the three lowest prices were recorded in Gombe State, Bayelsa State and Delta State with N2,033.38, N 2,043.55 and N 2,196.33 respectively.

The Guardian had reported that although the federal government has exempted cooking gas from import duties, taxes returned to the product will see the country’s four major importers of the product pay around 27 billion naira to the Nigerian customs service (NCS ) in the next few weeks.

Nigeria Liquefied Petroleum Gas Association (NLPGA) President Nuhu Yakubu said the group is currently urging the government to resolve all necessary issues, including access to foreign exchange, value added tax, levies, among others, hoping that their efforts will yield positive results in due course.

He said: “The high prices of LPG have altered the demand for firewood and charcoal, thus fueling desertification and erosion with a very negative impact on the environment.