"N1,400/1kg:" Tough Times as Cooking Gas Scarcity Hits Lagos, Kano, Others, Marketers Reveal Why
- Nigerians have reported a lack of Liquified Petroleum Gas, also known as LPG
- Residents of Lagos, Kano, Kaduna, and Delta states are currently grappling with the high price of the product
- The cost of 12.5kg has increased from N8,700 to between N13,500 to N14,000 in October 2023
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Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
Many Nigerian states have reported the scarcity of Liquified Petroleum Gas, known as cooking gas, in Nigeria.
The affected states are Lagos, Katsina, Sokoto, Delta, Kaduna, and Kano.
Source: Getty Images
Marketers accuse terminal owners of inflating cooking gas price
The increase in the commodity's price became noticeable in October following a continuous rise in prices as marketers pointed accusing fingers at terminal operators.
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Terminal owners increased the commodity's price by $66 in October.
Legit.ng had earlier reported that they raised the price of 20 metric tons of cooking gas to N16 million from N10 million at the beginning of October despite the NLNG supplying 20 metric tons to them at N9 million.
Punch reports that 12.5kg of cooking gas sells for between N13,500 and N14,000 on the black market.
The dealers reportedly said that gas plant owners now sell to them for between N1,100 to N1,200 per kg due to the commodity's scarcity.
As of June 2023, 12.5kg sold for around N8,700, and in September, the price rose again to between N13,500 and N14,000.
Marketers ask consumers to avoid retailers
According to reports, the President of the Nigerian Association of Liquified Petroleum Gas Marketers, Oladapo Olatunbosun, revealed on Sunday, November 5, 2023, that there is not enough gas in Lagos state.
He stated that his plant sells the commodity at N950 per kg, adding that consumers should avoid retailers and patronise gas plant owners to avoid incurring high costs.
Consumers also reported the scarcity of the product in Katsina state following an increase in prices two weeks ago when it began selling for N1,400 per kilogramme.
The situation remained the same in other states like Kaduna, Kano, and Delta, where consumers carried gas cylinders searching for the commodity.
Nigeria has the fastest-growing LPG market in the world
The NLNG supplies the market with 70% of cooking gas consumed in Nigeria, Olatunbosun said.
Nigeria reportedly has the fastest-growing LPG market in the world, with a market size of $10 billion following the rise in the per capita consumption of LPG from 1.8kg in 2015 to 5kg in 2021.
The Petroleum Products Pricing Regulatory Agency said that domestic consumption of cooking has surpassed one million metric tons as of 2020, saying that the consumption rate in 2020 was historical when LPG consumption reached the one million MT mark.
“No More N9k”: Tougher times ahead as marketers predict higher Price for 12.5kg Cooking Gas
In an earlier report, Legit.ng reported that the price of refilling a 12.5kg cylinder with cooking gas predicted to rise as high as N18,000 by December 2023.
This was disclosed by the NALPGM president.
Oladapo noted that there has been a sudden increment from between N9-N10 million per 20 metric tons to N14 million per 20 metric tons, Punch reports.
Source: Legit.ng
