Editor
Great relief may soon come the way of users of cooking gas across the nation if the reported drop in the price of the essential household commodity is anything to go by.
Investigation revealed that 12.5 kg of cooking gas — which until recently ranged between N9,375 and N13,000 in May — now goes for N6,950.
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.
Experts say that unlike petrol, cooking gas is not subsidised by the government. This means that the price of cooking gas is majorly determined by market forces described 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” Said the source.
SOURCE: THE CABLE
