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GLOBAL GAS PRICES SKYROCKETS: ITS IMPLICATION ON THE NIGERIAN MARKET

GLOBAL GAS PRICES SKYROCKETS: ITS IMPLICATION ON THE NIGERIAN MARKET

Reports gathered by CNN Business on the 12th of October 2021 explored the drastic spike in gas prices globally as the situation consistently worsens. Prior to this turn of events, the cost of energy was drastically cheap last year at the height of the pandemic.

However, energy demand is now in full swing and as such, there is a tilt in the supply and demand of the energy in question. The US oil prices have skyrocketed immensely for the first time in nearly seven years. The same can be said for many countries such as India, Nigeria, Kenya and many more.

Unfortunately, there is no foreseeable reduction in these prices as the pump prices may get lifted even higher by the energy problem that exists globally.

The prices for natural gas have also increased by no small width, especially in Europe and Asia, that power plants and factories may increasingly turn to a relatively cheaper fuel source for electricity: crude oil.

if this is to be the trend going forward, it begs the question of how third world countries are to survive. Especially since many of them are just gradually starting to embrace LPG and its many alternatives. Many Nigerians and neighbouring African countries are starting to revert back to primitive energy sources due to the drastic increase in the prices of LPG in the country.

There are many internal and external issues that affect this increase however there is a NEED that alternatives be explored by suppliers and marketers within and outside the country to make sure that the supply chain balances once more. Only then can there be the hope of a steady increase in LPG usage for Nigerians who need it.

Source:

CNN BUSINESS

Matt Egan.

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