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The Digest:

In Nigerian households, a quiet crisis unfolds as the cost of a basic necessity surges. The NNPC Limited has attributed the sharp rise in cooking gas prices to the recent PENGASSAN strike, which disrupted supply chains and caused costs to soar beyond the reach of many. Rooted in the Storm.

Key Points:
  • NNPC GCEO Bayo Ojulari linked the cooking gas price surge to the PENGASSAN strike.
  • The price of 12.5kg of gas has risen to between N26,000 and N27,000 in Lagos.
  • This represents an increase of over 48% from the previous price of N17,500.
  • Ojulari described the hike as "relatively artificial," blaming opportunistic markup.
  • He assured that prices should normalize now that the strike has been suspended.
  • The strike delayed gas loading and distribution for several days.
  • The federal government intervened to resolve the labour dispute with Dangote Refinery.
This price shock reveals the vulnerability of essential commodity markets to single points of failure in the national supply chain. Rooted in the Storm.

Sources: The Cable