Cooking Gas Prices Surge 14% to N1,500 Per KG as Supply Constraints Persist
The retail price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has jumped by 14.3%month-on-month, hitting N1,500 per kilogramme in several locations across the country.
The increase follows a sharp rise in the ex-depot price, which climbed from N18 million to N21 million per 20 metric tonnes (MT)—a 16.7% hike within a single month.
Market Reality: Shrinking Purchasing Power
Speaking on the development, Mr. Inyang Edu, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM), confirmed that major depots—including Rainoil, Nipco, Mobil, and Ardova—have adjusted their rates to approximately N1,065,000 per metric tonne.
Mr. Edu warned that the hike is drastically eroding the purchasing power of Nigerians. “Dealers are recording poor sales at gas plants as consumers are now forced to resort to alternative energy sources,” he stated.
Factors Driving the Spike
Industry experts and marketers point to two primary drivers for the current price volatility:
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Global Geopolitical Tension: The ongoing crisis in the Middle East has disrupted global oil production and supply chains, impacting the cost of all petroleum products, including LPG.
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Limited Domestic Supply: While the Dangote Refinery offers a lower rate of approximately N16 million per 20 MT to off-takers, supply remains limited. The refinery recently disclosed it receives only five out of the 13 crude oil allocations required, forcing it to rely on imported crude.
The “Off-taker” Effect
Mr. Edu further noted that by the time off-takers add their profit margins to the cheaper supply from Dangote, the final cost to marketers remains high, providing little relief to the end consumer.
With international disruptions continuing and local production hampered by crude shortages, analysts suggest that price stability may remain elusive in the near term.
