Seemberg News

Latest Nigeria Business News

Energy crisis: Cooking gas, diesel prices rise, as power generation dips


Energy crisis: Cooking gas, diesel prices rise, as power generation dips

NIGERIA’s households and businesses are going through very difficult times as a result of the continued escalation of cooking gas, diesel and other resources.

This becomes unbearable as their incomes have not experienced any meaningful increase in the past few years, which also recorded a significant drop in the value of the Naira, currently going for N1,400/$ at the official market.

A market survey by Energy Vanguard, weekend, indicated that the price of cooking gas (12.5kg) that stood at N11, 250 in December 2023, has risen to N15, 000, indicating an increase of 33.3 per cent.

Similarly, the price of diesel has risen to N1, 270 per litre in February 2024, from N800 per litre in the corresponding period of 2023.

The market trend is mainly driven by the depreciation of the Naira and increased utilisation of diesel by consumers, including the tanker drivers involved in moving petroleum products from one part of the nation to another.

Also, consumers further suffer from inadequate and unstable supply of electricity as generation, dropped year-on-year, YoY, by 17.8 per cent to 4,015.55 megawatts, MW on February 11, 2024, from 4,887.7 MW recorded in the corresponding period of 2023.

But on month-on-month, MoM, the generation dropped by 19.4 per cent to 4,015.55MW in February, from 4,981.78MW, recorded in the preceding month of January 2024.

The Nigerian Electricity System Operator, the semi-autonomous unit of the Transmission Company of Nigeria, TCN, attributed the factors responsible for the declining trend to inadequate gas to thermal stations and poor state of stations.

Checks by Energy Vanguard showed that the electricity generated remains inadequate for transmission and distribution to consumers, including households and companies in all parts of Nigeria.

It also indicated that the Electricity Distribution Companies, DisCos have embarked on load shedding, targeted at ensuring that the little supply is shared to many consumers at different times.

However, the Nigerian Gas Association, NGA, said it remains proud to support the Federal Government’s renewed focus on prioritising autogas to cushion the effects of the removal of subsidy on the petrol.

In its report obtained by Energy Vanguard, NGA stated: “The leadership of the NGA believes that this policy leaning is very apt as it accelerates the domestic adoption and utilisation of gas, a resource that the country is most endowed with. Gas for the transportation sector and also for users of small generators, whether powered by Liquefied Petroleum Gas or Compressed Natural Gas (CNG), is one of the most affordable, available, safe, and reliable fuels that also substantially addresses global carbon emission concerns and the well being of the environment.

“To achieve this, the NGA urges the Federal Government to revisit and accelerate the implementation of the Nigerian Autogas Policy launched two years ago as part of the National Gas Expansion Programme (NGEP) under the well-articulated Decade of Gas Policy and Programme.”

The President of NGA, Akachukwu Nwokedi, had said: “We salute the steadfastness of President Bola Ahmed Tinubu in his quest to return Nigeria to responsible and sustainable energy utilisation. We are also elated about his recognition of the critical and game-changing role that gas would play in actualising this policy direction and helping build the nation.

“The members of the NGA are very keen to support the implementation of the autogas policy and stand ready to commence the strategic engagements and enlightenment campaigns to make it happen.”

Previous Article

Cadbury shareholders approve loan conversion to shares

Next Article

eNaira adoption surges as value in circulation rises 302% to N10bn

You may also like

Leave a Reply

Your email address will not be published. Required fields are marked *