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10 Causes of High Cooking Gas Price in Nigeria

In our local setting, in our villages, we cook with firewood and charcoal. Modernism now demands that many Nigerians cook with cooking gas. But, the price of cooking gas is now so high that it is becoming unaffordable. Therefore, we will look into 10 possible causes of this high price of cooking gas in Nigeria.

10 Causes of High Cooking Gas Price in Nigeria

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The ten possible causes of high cooking gas price in Nigeria that we want to look into include:

  1. Foreign Exchange
  2. Price Control
  3. Value Added Tax
  4. High Demand
  5. Short Supply
  6. Middle Men
  7. Imported Product
  8. Poor Leadership
  9. Local Production
  10. Cost of KeroseneInformation Guide Nigeria

10 Causes of High Cooking Gas Price in Nigeria

2. Foreign Exchange

The cooking gas that is used in Nigeria is not produced in Nigeria. Thus, the price is not determined locally. Being a foreign product, its price is determined internationally. So, foreign exchange is involved.

The recent devaluation of the naira places the dollar far higher than the naira. As such, so much naira is spent buying what was originally bought at a low price.Causes of High Cooking Gas Price

2. Price Control

Nobody controls the price of cooking gas in Nigeria. Thus, the price of cooking gas in Nigeria varies from place to place.

Therefore, a person who has spent so much in importing cooking gas will like to get his money back and still make gains.

Nigerians, being who they are, will always want to exploit others. The gain that they will like to make will double what they had spent. Thus, the price of cooking gas in Nigeria must be higher than it is in other countries.

It is for this reason that cooking gas in Nigeria is so high in price. Moreover, nobody is there to check the price. It can be sold at any price.

Read Also: Effects of Dollar Rate on Commodity Prices in Nigeria

3. Value Added Tax (VAT)

The federal government does not help matters too. The value-added tax that the federal government removed from goods that are imported into Nigeria has been reintroduced. Now that the tax is added to the normal price of the cooking gas, its price must become high as well.UNIPORT Admission List 2021/2022 is out

4. High Demand          

In the villages, people cook with firewood. Firewood is everywhere. It is fetched from the bush and forest nearby.

The case is different in the township. The type of buildings in the cities does not allow the use of firewood. Therefore, many people in the cities cook with cooking gas. This makes the demand for cooking gas to be very high as many people move to the cities daily.

When demand is high, the price must go up. More so, that it becomes a necessity. People must need it no matter the price.FUOTUOKE Post-UTME Registration Deadline 2021/2022

Besides, firewood cannot be easily gotten in the cities. It is, therefore, extremely difficult for those in the cities not to buy the cooking gas at any cost.

Cooking with electricity that would have been an alternative is a no-go area. No one can depend on Nigerian electrical supply. This means that those living in the cities cannot do without cooking gas. Hence, the price is now very high.

5. Short Supply

In a situation where supply is higher than demand, the price will be low. However, where supply is lower than demand, the price must go up. The supply of cooking gas in Nigeria is far lower than its demand.

One advantage of the cooking gas is the fact that it does not blacken pots. For this reason, even those who would have cooked with firewood would like to cook with gas. Many people are still cooking with firewood because of the high cost of cooking gas. Thus, the price of cooking gas in Nigeria will remain high until the supply of cooking gas in Nigeria surpasses its demand.Npower recruitment

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6. Middle Men

Since the cooking gas that is used in Nigeria is produced overseas, intermediaries will always have their way. Cooking gas in Nigeria passes through many people before it gets to the final consumer. These middlemen increase the price of the product.dollar to naira rate

7. Imported Product

The cooking gas that is used in Nigeria is a foreign product. It is imported into Nigeria. Thus, much money is involved.

Like all other foreign products, the cost of cooking gas must be high. The price of foreign products is always higher than locally produced products.

8. Poor Leadership

Nigeria’s leadership is poor. Nigerian leaders do not care about the led. They only know of themselves.

As long as these leaders have the money to buy the cooking gas, they do not care about others. They will always allow the price to soar.

No common person can control the price of any commodity in Nigeria. Only the leaders can do it. If the price of cooking gas in Nigeria is placed on check, the price will come down.

One thing is clear. There is general hardship in Nigeria. Many people cry about this. Nevertheless, the leaders do not care to put a check on the price of anything.

Many Nigerians no longer eat beans. The beans’ price is higher than many Nigerians can now afford. Is it the cooking gas that will be used to cook it that should be cheap? The cost of cooking gas is to make things worse for the common person.

The change that the leaders promised Nigerians is now a negative one. Many Nigerians now regret voting in the leaders they now have. These leaders care for themselves and not the led who voted them in.

Unless something is done about the cost of cooking gas in Nigeria, the price will continue to go up. If anything can be done about the price, only the leaders can do it.WAEC result

See the problem now. The naira is devalued. At the same time, VAT is reintroduced. How can these two things work together for the common person? The result is now a high price on cooking gas that is imported.

Therefore, you can see that the leadership is a great contributor to the high price of cooking gas in Nigeria.

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9. Local Production

Cooking gas is extracted from petroleum, which is readily available in Nigeria. Nevertheless, where are the plants that will extract it? It is for this reason that the product is imported. The cooking gas that is used in Nigeria is a foreign product. It is produced overseas.

Therefore, the high price of cooking gas in Nigeria is a result of it not being produced in Nigeria.

This is another place where the leadership can come in. let them put the refineries to work and the price of cooking gas in Nigeria will come down. If not, the cost of the product will continue to rise.JAMB form

10. Cost of Kerosene

The cost of kerosene, the nearest alternative to cooking gas, is high.

Nigerians are very crafty. They know how to punish others. As long as the alternative price is high, the price will remain high so that people will not leave the product.

Read Also: 7 Effects of Government Bureaucracy On Business Performance And Survival In Nigeria

Conclusion

The bottom line is that the price of cooking gas in Nigeria is high because of the cost of the dollar. It is also high because no one controls its price. The value-added tax, short supply, high demand for the product, and poor leadership make the price to be high.JAMB Result

Check and Confirm: How much is Dollar to Naira today         Pounds to Naira today

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Isaiah Atawheke

Isaiah is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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