Nigerians react as price of cooking gas drop

Nigerians on social media have continue to react to the reported crash in the price of cooking gas, ValidView Network reports.

On Sunday, a freelance writer, Wale Adedayo, took to the microblogging platform, Twitter to share a receipt for cooking gas purchased on June 1.

The receipt showed that 12.5 kg of cooking gas — which reportedly ranged between N9,375 and N13,000 in May — now goes for N6,950.

“12.5kg of Cooking Gas in May – N9375, 12.5Kg of Cooking Gas in June – N6950. Maybe…just maybe…we should speak out when prices go down too. This feels good,” he wrote.

The receipt was also shared by many others on Twitter in different contexts.

The reported drop in price of cooking gas is coming days after President Bola Tinubu announced an end to fuel subsidy leading to hike in the price of the commodity.

Some users argued that the drop in the price of gas is an indication that the price of petrol will also crash with time, when the subsidy is finally removed.

Others also said the government deserves to be applauded for the current price of gas.

ADVERTISEMENT

WHAT DETERMINES THE PRICE OF GAS?

Cooking gas, diesel and aviation fuel unlike petrol are not subsidised by the government. This means that the price of these products are majorly determined by market forces.

Speaking on this, a professor of Financial Economics at American University School of Business, Yola, Adamawa state, Leo Ukpong, described the reported drop in price as a “supply-driven phenomenon”.

“The production of gas is very different from the refinery process of petrol. In the first place, gas was not subsidised, so it is not part of the whole subsidy issue. Petrol or PMS was subsidised but the price of cooking gas has always been determined by market forces,”

“Cooking gas is basically demand and supply. The drop in price could be due to an increase in supply. If that is the case, it means the gas plants in the country are now more efficient. I think it is a supply-driven phenomenon.”