Foreign gas investors and middlemen have been accused of being the major force behind skyrocketing gas prices across the country. OPEOLUWANI AKINTAYO writes on the roles they play in hike in prices which have risen from around N3500 as of December 2020 for a 12.5kg cylinder, to around N11, 000 depending on the location
The ‘Decade of Gas’ agenda of the Federal Government that aims to encourage more use of gas in the country stands the risk of becoming an illusion if no decisive step is taken to stem the current tide of hijack in the Nigerian gas market.
The PUNCH findings revealed that foreign investors and middlemen/offtakers, who delight in incessantly inflating gas prices to the detriment of Nigerians, have hijacked the Nigerian gas market.
The prices of Liquefied Natural Gas, also known as cooking gas, have gone beyond the reach of an average Nigerian since 2020 when the COVID-19 pandemic broke out, which forced global exploration to slow down. This was coupled with the Russian/Ukraine war which caused a rise in the exchange rate, tightened supplies, and jacked up prices, among others.
Prices have skyrocketed from N3,500 for a 12.5kg gas, as of December 2019, to the region of N10,500, N11,000 and N12,000, depending on the location of purchase.
As a result, Nigerians, especially those in the rural and semi-urban areas, have been forced to abandon gas for cheaper cooking alternatives such as firewood and coal.
Investigations revealed that apart from the global unavoidable causes of supply shortage and high prices, some foreigners and local middlemen in the gas business have also been contributing largely to the hike in cooking gas prices.
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