June 24, 2024

Cooking Gas Prices Show Signs of Decline Across Nigeria

 

 

The cost of liquefied petroleum gas (LPG), commonly known as cooking gas, has begun to decline across Nigeria, bringing relief to consumers who have faced high prices for months.

 

In recent reality checks, consumers in various states, including Ogun, Lagos, and Oyo, reported that the average price of 1 kilogramme of cooking gas has dropped to around N1,000 or less, depending on the location and seller. This marks a significant reduction from earlier in the year when prices soared to about N1,300 per kilogramme.

 

The National Bureau of Statistics (NBS) had previously reported that the price of a 12.5kg cylinder of LPG increased by 46.88 percent year-on-year in February, reaching an average of N15,060.38, up from N10,253.39 in February 2023. The NBS also noted a 28.33 percent increase from January 2024 to February 2024.

 

Despite the earlier surge, current observations indicate a downward trend in prices. This development is partly attributed to the strengthening of the naira, which has rebounded from approximately N1,900 per dollar to around N1,500.

 

Adedokun Ojo, a resident of Abule Egba in Lagos, shared her recent experience, stating, “LPG is now N940 per kg. I bought it yesterday evening at Mobil in Abule Egba.”

 

Similar reports came from other regions. Uzor Nneka from Enugu confirmed, “I got a kilogramme of gas for N1,000 at the Romchi plant in Enugu.” Jonathan Igbowu, from the Idiroko border community of Ogun State, noted a price drop to N1,050 per kilogramme.

 

Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, credited the price reduction to government efforts to increase the volume of domestically produced LPG in the market. “The domestication of LPG export has reduced dependence on imported LPG, mitigating costs associated with foreign exchange fluctuations,” said Ekpo, through his media aide, Louis Ibah.

 

The minister highlighted that waiving Value Added Tax (VAT) and customs duties on gas and related equipment also contributed to the price decrease. Ekpo assured that prices would continue to fall as more domestically produced LPG enters the market.

 

However, not all stakeholders are optimistic. Bassey Essien, Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), warned that the price might rise again due to the influence of foreign exchange rates. “Even if we boost local production, the price will remain unstable because gas producers sell in foreign currency,” Essien explained.

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