Just when Nigerians thought they had mastered the art of surviving fuel price hikes with a mix of dark humor and pure grit, another contender for their wallets and sanity emerged: the escalating price of cooking gas (Liquefied Petroleum Gas or LPG). It seems the universe decided that if petrol wasn’t giving us enough drama, surely a staple like cooking gas would light up the discourse, and indeed, it has become a premium.

Gone are the days when refilling your gas cylinder was a mere errand. Now, it’s a strategic mission, requiring intentional strategy on prices, a quick budget re-evaluation, and perhaps a small prayer. The familiar hiss of the gas burner is slowly being replaced by the gentle hum of electric kettles for instant noodles, or the crackle of firewood and kerosene stoves for the truly nostalgic (or desperate). People like me cannot relate to the gas hike because school rules still limit us to using kerosene stoves. On normal days, it feels like a punishment, but considering the hike in LPG, it feels like a blessing in disguise.

Nigerians’ reaction to the fee hike

Nigerians express shock at how quickly prices have doubled, with many noting that what cost N1,000 to N1,300 per kilogram previously is now selling for N2,000 or more. One common complaint is the forced reversion to dirtier, less healthy fuels like kerosene and firewood, with households agonizing over the trade-off between pocket safety and lung safety.

The sentiment is that the luxury of a full cylinder of gas is fast disappearing, turning even simple acts like boiling water for a bath into a major calculation. The frustration has spilled over into political commentary, with some X users expressing such despair over the unbearable cost of living that they’ve sarcastically suggested the country be “sold to China or Ghana” if the economic issues can’t be resolved. The widespread misery is also felt by small business owners who are being forced to choose between raising food prices and shutting down their restaurants.

What is the reason behind this current hike?

The surge in the price of cooking gas in Nigeria is a complex issue driven by a convergence of global, domestic, and logistical factors. This recent hike in LPG price can be linked to different factors, from;

1. The Global and Forex Challenge (The Root Cause)

•   Pricing in US Dollars: Despite being a major gas producer, a significant portion (over 60% in the past) of Nigeria’s domestic LPG supply is tied to the international market price, which is benchmarked and sold in US Dollars.
•   Naira Devaluation: The most critical factor is the sharp depreciation of the Naira against the US Dollar. As the Naira weakens, the local cost of acquiring US Dollars to pay for LPG imports and even locally produced gas priced in dollars (like that supplied by NLNG) skyrockets. This directly inflates the retail price for the consumer.
•  Global Fluctuations: International market volatility, influenced by global energy demand (especially during winter in Europe/US) and geopolitical events, directly impacts the dollar price of LPG, further compounding the local price problem.

2. Supply Disruptions and Market Exploitation (The Immediate Cause)

•   Temporary Supply Gaps: Recent sudden spikes have been attributed to temporary supply disruptions. The most recent major spike was linked to an industrial strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against the Dangote Refinery. Although the strike was brief, it halted loading and distribution activities, creating an artificial scarcity.
•  Logistical Challenges: The disruption, combined with existing infrastructure constraints in transportation and storage, created a demand-supply imbalance, especially in major consumption areas like the South-West.
•   Opportunistic Marketers: The supply shortfall was quickly exploited by opportunistic marketers who leveraged the temporary scarcity to hike prices, causing a rapid, significant surge in the retail price per kilogram.

3. Structural and Policy Issues (The Long-Term Problem)

•   Inadequate Local Infrastructure: Despite being rich in natural gas reserves, Nigeria has a deficit in infrastructure for processing, bottling, storing, and distributing LPG efficiently across the country.
•  Insufficient Local Production for Domestic Use: While Nigeria is a major gas producer, local production of LPG for the domestic market has historically been insufficient to meet rapidly growing national demand (which has risen significantly over the years), forcing a heavy reliance on imports.
•  Taxes and Levies: Multiple layers of taxes, levies, and port charges also contribute to the final high retail price of the commodity.

These factors combine to make cooking gas an increasingly expensive and unpredictable commodity for Nigerian households.

The escalating price of Liquefied Petroleum Gas (LPG) is a complex financial challenge rooted in global market forces, currency depreciation, and domestic supply vulnerabilities. While the economic implications are serious, forcing a regression to less healthy cooking methods and squeeze household budgets. The Nigerian spirit, as always, finds a way to adapt.

Therefore, as we await a structured and sustainable national policy solution, the prudent Nigerian must integrate this new reality into their financial planning. It’s an exercise in extreme fiscal discipline: a situation where managing your gas cylinder effectively is a greater priority than managing your investment portfolio.

We must conclude with a sobering reality: For the foreseeable future, a household that owns a fully refilled 12.5kg cylinder should be respected as a financial entity that has successfully hedged against inflation. They are the true economic giants of this era.

Good luck, and may the pressure in your gas cooker remain high, even when your budget pressure is at its limit. The nation is watching.