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Price Of Cooking Gas Crashes as Naira Gains

April 21, 2024
in Business
Price Of Cooking Gas Crashes as Naira Gains
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Cooking Gas CylinderCooking Gas Cylinder

FIRS

Price Of Cooking Gas Crashes as Naira Gains 

The prices of liquified natural gas (LPG), also known as cooking gas, are beginning to crash following the appreciation of the Nigerian currency, the Naira.

In March, some Nigerians and gas dealers expressed anger over the rising price of cooking gas and called on the Nigerian government to intervene urgently.

However, a recent survey by Legit shows that some sellers have crashed the cooking gas prices from ₦1,500 per kg to about ₦1,100 due to Naira gains in all the markets.

At the Gasland plant in the Iju-Ishaga area of Lagos, the product’s retail price was reduced to ₦1,100 per kg from the ₦1,500 it sold for in March.

Speaking anonymously to the aforementioned publication, a Gasland plant manager said 12.5kg of gas sold for ₦14.400 two weeks ago but currently sells for ₦13.300.

The manager attributed the price crash to the availability of forex for imports, saying the naira gains have contributed to the price reduction.

He added that prices may crash further if the Central Bank of Nigeria (CBN) continues its forex interventions.

He said, “Everyone knows that the dollar is crashing, and Nigeria imports most of the LPG consumed there. So, we can say the naira gain is helping to push down the cost of the commodity.

“Two or three weeks ago, our facility sold 12.5 kg for as high as ₦15,600 because of the scarcity of forex. Also, we had mostly old stocks purchased using the exchange rate of N1,500 per dollar.

“But now that the FX is hovering between N1,200 and N1,100 per dollar, it will be absurd to continue to sell at the old price it sold when forex was scarce and high.”

Source: Legit

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : EconomicConfidential – https://economicconfidential.com/2024/04/price-cooking-gas-2/?utm_source=rss&utm_medium=rss&utm_campaign=price-cooking-gas-2

Tags: businessCookingPrice
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