Cooking Gas Prices Skyrocket to N1,500/kg
Nigerians are grappling with rising fuel costs as the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has surged to N1,500 per kilogram.
The increase has been particularly noticeable in major retail outlets in Ogun and Lagos states, with the average price for refilling a 12.5kg cylinder in Abuja rising to N17,000, up from N12,000 just three months ago.
Suresh Kumar, Managing Director of NIPCO Plc, highlighted that over 60% of the cooking gas consumed in Nigeria is imported, which contributes to price volatility. He expressed optimism that the completion of the Dangote refinery and other domestic refineries would help reduce these prices in the future.
Kumar noted that local production currently meets less than 40% of domestic LPG demand, emphasizing the need for greater investment in local gas processing to enhance supply and stabilize prices
In recent discussions, the Minister of State for Petroleum Resources, Ekperikpe Ekpo, pledged to address the rising costs of cooking gas and promised to engage regulators and producers to find solutions. Despite these assurances, market surveys indicate that prices have continued to climb, with some areas reporting up to N1,400 per kilogram. Kumar reiterated that increased local production of LPG would mitigate reliance on imports and reduce exposure to foreign exchange fluctuations, ultimately making LPG more affordable for consumers.
Kumar also pointed out the potential for significant growth in Nigeria’s LPG consumption, which has expanded from 50,000 metric tonnes annually to approximately 1.5 million metric tonnes over the past 16 years. However, he noted that less than 60% of the population currently utilizes LPG, indicating untapped market potential. He called for investments in infrastructure and processing to capture flared gas, aiming to increase domestic supply to at least 5 million metric tonnes annually, thereby fostering a more stable and accessible LPG market.
