The price of Liquefied Petroleum Gas (cooking gas) has skyrocketed from N700/kg in June 2023 to N1,500/kg in October 2024.
The increase in price, which represents about a 114 per cent increase within the 16 months is linked to the rising exchange rate as the product is priced in dollars.
The devaluation/floating of the naira by President BolaTinubu administration has left the naira in free fall, now trading at about N1,700 to a dollar from less than N700 in May 2023.
According to the Managing Director/Chief Executive Officer of NIPCO Plc, Suresh Kumar, over 60 per cent of the cooking gas consumed in Nigeria is imported.
Speaking at the just-concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar revealed that local production of LPG remains inadequate, urging the Federal Government to encourage Chevron to convert more of its propane output into propane.
“Currently, less than 40 per cent of the 1.5 million metric tonnes consumed domestically is produced locally. This is why the government must encourage companies like Chevron to convert more of their propane output into butane, which is more suitable for domestic use,” he explained.
Given the fluctuating exchange rate and the country’s reliance on imports, there are concerns that the price of cooking gas may continue to rise.
According to a report by the National Bureau of Statistics, the average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas increased by 4.19 per cent on a month-on-month basis from N6,430.02 recorded in August 2024 to N6,699.63 in September 2024.
On a year-on-year basis, this increased by 59.90 per cent from N4,189.96 in September 2023.
On state profile analysis, Rivers recorded the highest average price for refilling a 5kg cylinder of cooking gas with N7,285.71, followed by Gombe with N7,271.88, and Borno with N7,089.72,” the NBS said.
On the other hand, Kebbi was said to have recorded the lowest price at N5,950, followed by Kano and Benue with N6,133 and N6,143 respectively.
“In addition, analysis by zone showed that the North-East recorded the highest average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas with N6,929.02, followed by the South-East with N6,893.47 while the North-West recorded the lowest with N6,382.30,” the report noted.
The report added that the average retail price for refilling a 12.5kg cylinder of cooking gas increased by 4.89 per cent on a month-on-month basis from N15,552 in August 2024 to N16,313 in September 2024.
“On a year-on-year basis, this rose by 76.41 per cent from N9,247.40 in September 2023. On state profile analysis, Rivers recorded the highest average retail price for the refilling of a 12.5kg cylinder of Liquefied Petroleum Gas with N17,993 followed by Gombe with N17,943 and Zamfara with N17,475.
“Conversely, the lowest average price was recorded in Adamawa with N13,983, followed by Nassarawa and Bauchi with N14,938 and N15,000 respectively.
“Analysis by zone showed that the South-East recorded the highest average retail price for refilling a 12.5kg cylinder of Liquefied Petroleum Gas with N16,957, followed by the South-West with N16,665 while the North-East recorded the lowest price with N15,770.75,” the NBS report added.
The price of LPG has continued to increase from around N300/kg in 2017, to about N1,500 in October 2024
