Cooking Gas Prices Expected to Fall

The cost of liquefied petroleum gas (LPG), commonly known as cooking gas, is showing signs of decline across various Nigerian states. Recent checks indicate the average price per kilogram has dropped to approximately N1,000, with variations depending on location and vendor.

Earlier this year, LPG prices soared to around N1,300 per kilogram in some regions. The National Bureau of Statistics (NBS) reported a significant year-over-year increase in the price of a 12.5kg cylinder, which jumped 46.88% to N15,060.38 in February 2024 from N10,253.39 in February 2023. The NBS also noted a monthly increase of 28.33% from January to February 2024.

Ogun State recorded the highest prices, with a 12.5kg cylinder costing N16,375, followed by Delta and Edo States. However, recent consumer reports indicate a gradual reduction in prices nationwide, which some attribute to the naira’s rebound from N1,900 to N1,500 per dollar.

Lagos resident Adedokun Ojo reported purchasing LPG for N940 per kilogram at a Mobil station in Abule Egba. Similarly, Enugu resident Uzor Nneka bought LPG for N1,000 per kilogram, down from N1,300.

In Ogun State, prices varied: Nojim Ajani found LPG at N750 per kilogram in Aferiku, while Ibrahim Ogunleye noted a drop to N1,200 in Ofa, Kwara State. Quadri Yusuf in Abeokuta observed a price reduction to N800 per kilogram from N1,200 in April.

Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, credited the price drop to increased domestic production and reduced reliance on imports, which has mitigated the impact of foreign exchange fluctuations. The government’s decision to waive VAT and customs duties on gas and gas equipment also contributed to the reduction.

Despite these positive trends, the Nigerian Association of Liquefied Petroleum Gas Marketers warned of potential price hikes due to the dollar-based pricing of gas. Executive Secretary Bassey Essien emphasized the need for local pricing solutions to stabilize the market.

The rising cost of LPG since 2017, coupled with recent economic challenges, has driven many Nigerians back to traditional cooking methods. The International Energy Agency highlights the severe health risks associated with cooking on open fires, which leads to premature deaths among African women and children.