Two key activities take center stage in Nigeria every Yuletide: cooking and travel. Families traditionally prepare various local and international dishes, offering a delightful culinary experience. Simultaneously, many embark on extensive travels to reunite with loved ones.
However, this year’s festive season brings daunting challenges, primarily due to soaring fuel prices. Recent developments in the petroleum industry indicate an unprecedented surge in fuel costs, significantly impacting transportation and cooking gas expenses for Nigerians.
The deregulation of the downstream sector earlier in the year triggered a remarkable escalation in fuel prices. According to the National Bureau of Statistics (NBS), the average retail price of petrol (PMS) surged by 220.49% from November 2022 to November 2023. In Lagos, petrol prices ranging between N600 and N650 per liter, setting a historical record.
Consequently, transportation costs have skyrocketed. The NBS transport fare watch indicates a 61.27% increase in inter-city bus journey expenses year-on-year, compounding the financial burden on travelers.
Comparatively, the surge in fuel prices over the past years is staggering. In December 2022, Nigerians paid an average of N206.19k per liter for petrol, marking a 315.2% increase from today’s average retail price of N650. The contrast with December 2021, when the average retail price was N165.77k, illustrates a whopping 392.10% rise in just two years.
The removal of the fuel subsidy by President Bola Tinubu during his inauguration significantly contributes to these escalating costs, impacting citizens’ pockets during the festive period.
In response, the federal government announced a 50% discount for major inter-state travel routes during the Yuletide and free train rides. However, concerns arise regarding the plan’s coverage and logistical feasibility.
As for cooking gas prices, while there’s an increase compared to last December, it’s not as stark as the surge in fuel prices. The cost of 1kg of cooking gas (LPG) ranges from N950 to N1,100 in Lagos, with an average 5kg price of N4,562.51 nationwide for November 2023.
The price surge in cooking gas, by 153.2% from December 2021 to 2023, is attributed to high demand, low local production, currency exchange rates, and geopolitical events like the Russia-Ukraine conflict. Nigeria can only meet 40% of the LPG demand, necessitating significant imports.
With rising costs impacting both fuel and cooking gas, this year’s Christmas season in Nigeria is set to be the most expensive yet, affecting everyone, whether traveling or simply enjoying festive meals amidst erratic electricity supply across the country.
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