Victor EzejaThe price of Liquefied Petroleum Gas (LPG), also known as cooking gas, has risen to N1,400 per kilogram (Kg) this month, reflecting 16.7 per cent, month-on-month increase from N1,200 in July.
Prime Business Africa’s checks revealed that 5kg has risen to N7,000 against N6,000 sold in July. Similarly, the cost of refilling a 12.5kg cylinder of gas has surged to N17,500, against N15,000 the previous month.
Join our WhatsApp ChannelThough not the first time of recording such level of price increase in 2024, the latest has unsettled many households, who never expected it after it dropped some months ago. The price had crashed from N1,500 to N1,100 per kilogram in April, and later moved up to N1,200.
“We see increase in price of gas each time the dollar exchange rate rises. It has been like that for some time now,” Kehinde Fagbenro, who refills cooking gas cylinders at Ilasa in Lagos told Prime Business Africa.
Maureen Aneke, a mother of two, who came to refill a 7kg cylinder, could not withhold her frustration upon realising that the money she had could not pay for the full cost when she was told the new price by the gas retailer.
“What have we done to deserve this kind of punishment from our government,” she queried. “Every time they keep increasing prices of things in this country,” she lamented. Mrs Aneke thought of pleading with the gas seller to give her on credit, but realised that she was yet to buy some food items. After standing and reflecting, she was left with no option than to buy the quantity she could afford.
Another woman, who managed to buy only two kg due to the high cost, said she would resume using her charcoal stove after the gas finishes.
Meanwhile, the National Bureau of Statistics (NBS), latest report on Liquefied Petroleum Gas (Cooking Gas) Price Watch for July 2024 revealed that the average retail price for refilling a 5kg cylinder increased on a year-on-year basis, by 46.96 per cent from N4,072.87 in July 2023 to N5,974.55 in July 2024.
The report, however, stated that the average retail price fell by 14.23 per cent, month-on-month, from N6,996.03 in June in 2024. According to the NBS report, Borno State recorded the highest average retail price for refilling a 5kg cylinder with N7,088.59, followed by Yobe and Sokoto states which had N6,935.50 and N6,750.00 respectively.
“On the other hand, Delta State recorded the lowest price with N5,392.86, followed by Zamfara and Kogi states with N5,431.25 and N5,560.63 respectively. In addition, analysis by zone showed that the North-East recorded the highest average retail price for refilling a 5kg cylinder of cooking gas with N6,446.53, followed by the North-Central with N6,042.33 while the South South recorded the lowest with N5,654.04,” it stated.
Speaking in an interview on Arise News Global Business Report, Managing Director of Asiko Energy, Felix Ekundayo, expressed concern about the high cost of gas in Nigeria.
Ekundayo, who is also president of the Nigeria Liquefied Petroleum Gas Association (NLPGA), said one of the reasons for the latest increase in cost of gas in Nigeria is the recent rise in international price. According to him, rise in international price affects the price of gas in Nigeria because of exchange rate as the naira continues to depreciate in FX market.
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“A number of reasons are responsible for the increase. One is in terms of the recent rise in international pricing which affects us locally. More importantly, the foreign exchange situation. Anytime there is an exchange rate change, as we have seen over the month, then there is an issue which unfortunately affects cooking gas price,” Ekundayo stated.
As cooking gas is considered one of the clean energy sources, there are concerns that people who can’t afford the high cost of the commodity may be forced to resort to coal, and firewood which has environmental consequences.
Ekundayo said the NLPGA is embarking on some programmes that would result in injecting more gas cylinders into the market to increase access, but it won’t be enough to address demands.
He therefore stressed the need for more investments in infrastructure to boost local production of gas and reduce reliance on import which makes the country susceptible to changes in the international price.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
