The price of cooking gas, or Liquefied Petroleum Gas (LPG), in Nigeria has experienced significant fluctuations, impacting household budgets nationwide.
As of December 3, 2024, the average retail price for refilling a 12.5kg cylinder of cooking gas has surged to approximately ₦17,000, reflecting a 41.6% increase from ₦12,000 in July 2024.
Historical Price Trends:
February 2023: The average cost for refilling a 5kg cylinder was ₦4,600.57.
May 2024: The price for the same 5kg refill rose to ₦7,418.45, marking a 70.12% year-on-year increase.
October 2024: The average price for refilling a 12.5kg cylinder climbed to ₦16,734.55, a 58.68% rise compared to October 2023.
Prices vary across different regions due to factors such as transportation costs and local demand:
North-East: Borno State reported the highest average price for refilling a 5kg cylinder at ₦7,939.29.
North-West: Katsina State had the lowest average price at ₦6,270.00 for the same 5kg refill.
Factors Influencing Price Instability:
Supply Constraints: Despite Nigeria’s abundant natural gas reserves, limited domestic processing capacity necessitates imports to meet demand, leading to price volatility.
Global Market Dynamics: International energy price fluctuations directly affect LPG costs in Nigeria, as global market trends influence local pricing.
Currency Depreciation: The devaluation of the Nigerian naira increases the cost of imported LPG and related equipment, contributing to higher consumer prices.
Infrastructure Challenges: Inadequate storage and distribution infrastructure result in supply bottlenecks, affecting availability and pricing across regions.
Government Policies: Recent removal of petrol subsidies and the devaluation of the naira have led to increased transportation and operational costs, indirectly impacting LPG prices.
In an effort to stabilize domestic supply, the Nigerian government implemented an export ban on LPG. However, this measure has not yet resulted in a significant reduction in prices, as market dynamics and existing supply chain issues continue to exert upward pressure on costs.
See the price of cooking gas per kg below:
1kg Cooking gas – ₦1,400
3kg Cooking gas – ₦4,200
5kg Cooking gas – ₦7,000
6kg Cooking gas – ₦8,400
10kg Cooking gas – ₦14,000
12.5kg Cooking gas – ₦17,500
