Relief as prices of cooking gas drop
CHIGOZIE AMADI
Nigerians are currently enjoying some relief on account of the ongoing drop in the prices of Liquefied Petroleum Gas, otherwise called cooking gas in the country.
In April, the cooking gas was sold for N900 – N1,000/kg. In another two months, it had skyrocketed to N2,000 – N2,500/ kg in many parts of Lagos and hit N2,400/kg in Ibadan and other parts of the country, which forced consumers to consider charcoal and other alternative energy sources.
Stakeholders blamed the earlier rooftops prices of cooking gas on supply disruptions, high costs, and logistics entailing inadequate storage, high transport costs, foreign exchange issues, and multiple handling charges.
Prices have crashed from N2,000 – N2,500/kg in June down to N1,100 – N1,500/kg in early July.
According to report, the product is sold between N1,250 – N1,500/kg in Abuja, Harcourt, Benin, Warri, Onitsha, Enugu*: N1,150 – N1,450/kg Kano & Kaduna, N1,300 – N1,550/kg, Maiduguri/Northeast up to N1,650/kg
Confirming the price reduction, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, disclosed that northern cities, including Kano and Kaduna, currently record prices of N1,300 to N1,550/kg, while consumers in Maiduguri and parts of the North-East still pay the highest prices, ranging from N1,350 to N1,650/kg.
This he said is evident in the additional logistics costs of transporting products to the region.
He hinted that the national retail price range now stands at approximately N1,100 to N1,650 per kilogramme.
He ascribed the price reduction to lower depot prices as supply improved, increased product availability from domestic sources and imports, reduced panic buying and hoarding after government market interventions, and increased competition among marketers in major cities in Nigeria.
Consumers expressed sigh of relief over the development, saying it will enable them resume patronage of the product following weeks of higher costs.
They lamented the price of the product and emphasized the need for further reductions with a view to enabling more Nigerians to consume cooking gas.
A consumer in Lagos stated: “It is a welcome gesture for me and my family for now.It means we can heave a sigh of relief away from the previous prohibitive prices which caused us to use charcoal to cook.
‘’I still think the prices should be further crashed to N700/Kg or less in line with the campaign of the government to increase the consumption of cooking gas in Nigeria.Nigeria has enough gas deposits to make this happen.”
The federal government had recently directed security agencies and regulators to crack down on hoarding, illegal diversion and speculative storage of liquefied petroleum gas (LPG), commonly known as cooking gas, as prices of the product skyrocket across the country.
Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), who spoke at an emergency stakeholders’ meeting in Abuja, said the Department of State Services (DSS), Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force would be involved in tackling practices contributing to higher prices.
He ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify market surveillance and work with security agencies to eliminate artificial scarcity, discourage hoarding and improve transparency in product distribution and pricing.
He said marketers had expressed willingness to increase imports where necessary, while new domestic supplies, including from the Seplat gas facility, would boost availability in the coming weeks.
“We are also exploring a local blending initiative with Nigeria LNG Limited, local producers, and the Port Harcourt plant operator to move locally produced LPG closer to the market, reduce import pressure and logistics costs, improve reliability, and support more stable pricing,” the minister said.
“Marketers and importers (must) bring in additional volumes where required, share arrival and discharge timelines, price responsibly, and avoid withholding product for speculative gain (while) transporters and logistics operators (must) increase truck availability, clear delivery bottlenecks, keep haulage costs transparent, and move product quickly to areas of high demand.”
