Gas prices took a turn for the better this year, with a 30% decline in prices, this would affect on Nigeria’s living expenses positively.
For the first time in a year, cooking gas prices dropped in May in the largest economy in Africa, providing households with an unanticipated but fleeting reprieve.
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Due to falling crude oil prices and a drop in gas prices worldwide, the cost of a 12.5kg cylinder of cooking gas has decreased by 30%.
According to a survey of key cities in Nigeria, the cost of cooking gas is moving down, from N10,000 two months ago to N7,000 today.
This is a breakthrough that may lessen some of the strain on struggling people who have been battling with increasing inflation since last year as well as the recent increase in fuel costs as a result of subsidy removal.
Low-income homes like mine are greatly relieved by the recent decrease in cooking gas prices. This is the only decrease we have witnessed in the last two years, according to Mary Chukwu, a food vendor at the Ketu bus stop. “Prices are just going up everywhere,” she added.
Additionally, it aids in mitigating some of the effects of the most recent increase in fuel prices. If not, the impact and shock would have been severe, according to Chukwu.
A food vendor at Mile 12 Market named Abosede Ademola expressed her happiness when her supplier told her of the decrease in cooking gas costs.
“Every time I ask him to supply me, he merely tells me, so I was extremely thrilled when he told me. “You are aware that prices are rising constantly. This is a huge comfort for us because the ongoing price increase makes it impossible to even walk to the market with a certain budget and know exactly what you will buy,” she remarked.
The purchasing power of consumers is declining as a result of accelerating inflation and declining household earnings.
According to figures from the National Bureau of Statistics, Nigeria’s inflation rate reached 22.22 percent in April, the highest level in 17 years. This rate significantly outpaced wage growth.
Since the beginning of the year, the situation has only gotten worse, and there are indications that it will get worse still.
According to BusinessDay’s market report, prices for food have increased by 150 percent, while those for fuel and diesel have increased by 174.6 percent and 160 percent, respectively, year over year.
Given that more than 90% of Nigeria’s working population spends 60% of their income on food and related expenses, researchers argue that food inflation, which has reached 24.6 percent, is the main cause of the country’s core inflation.
According to reports, the increase in food prices has caused household consumption expenditures to rise by 12% to N27.3 trillion in the first half of 2022, the highest level in five years, from N25.3 trillion in the equivalent period of 2021.
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With 63 percent of the population (133 million) experiencing multidimensional poverty as a result of the scenario, many Nigerians are now poorer than they were in 2021.
“The country is going through a lot right now, so any kind of drop is significant for consumers” said a market trader.
