Fuel Subsidy: Nigerians React As Cooking Gas Price Crashes
LAGOS JUNE 5TH (NEWSRANGERS)-The reported drop in the price of cooking gas in the country has ignited heated reactions among Nigerians on Twitter.
On Sunday, Wale Adedayo, a freelance writer, took to the microblogging platform 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 development comes on the heels of controversies trailing President Bola Tinubu’s announcement that “fuel subsidy is gone“.
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.
WHAT DETERMINES THE PRICE OF GAS?
Unlike petrol, cooking gas is not subsidised by the government. This means that the price of cooking gas is majorly determined by market forces.
Speaking on this, Leo Ukpong, a professor of Financial Economics at American University School of Business, Yola, Adamawa state, 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,” he told TheCable.
“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.”
Reactions
- 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
Price of Cooking Gas dropping daily, we should talk about it more so people understand that “drop in price” happens in Nigeria.
*Better Times Are Here!* It’s not everything we ought to amplify ‘terrible’ situation (s) in Naija. We should endeavour to report the good too. The price of cooking gas was as high as N13,000 for 12.5kg but it is gradually coming down. As of today, it is less than N7,000 across all Gasland Stations. And this is expected to drop further in coming weeks. Let’s be patriotic. Kindly share the good news. Asiwaju means well. #AsiwajuIsHere #PBATMyPresident #KickSubsidyOut #SaveTheEconomy #KemKem
Breaking News: The price of cooking gas crashes from 13,000NGN to 6,950NGN but it’s not trending. If we can try to have a balanced criticism of the government, Nigeria will grow faster. They will take citizens more seriously. When they do well, say it. When they do wrong, say it. Not just singing praises like fanatical cult followers, Not just always antagonistic, like sadistic wailers and opposition of progress. There’s never a perfect country There’s never a perfect government There are only perfect citizens who are either committed to building their nation Or problematic ones who are hellbent on pulling down the nation at the slightest availed chance.
“Fuel price has gone up, useless government” “Price of cooking gas has dropped. Can anyone tell me why?” Nigerians in 2 tweets.
- The price of cooking gas is going down so will the prices of other petroleum products go down in few weeks to come. How much is cooking gas in your area?
This is the current Price of cooking gas. This has demystified the narrative that prices don’t come down once subsidy has been fully removed. In the case of Cooking, it’s been deregulated for a while now and we are now enjoying the benefits. Enormous job opportunities!
I wonder why we are not talking about the fall in the price of Gas??? Do we only like sharing bad news?? Different hot takes on fuel subsidy and high fuel price but nothing on this one
- *Better Times Are Here!* It’s not everything you amplify ‘terrible’ situation (s) in Naija. Endeavour to report something good too. The price of cooking gas that went as high as N13,000 for 12.5kg is gradually coming down.
The Cable
Short URL: https://newsrangers.com/?p=109098
Posted by News Rangers
on Jun 5 2023. Filed under Business, National.
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