Cooking Gas Price Hits New High, Nigerians React as Report Shows Cheapest, Costliest States For LPG

Cooking Gas Price Hits New High, Nigerians React as Report Shows Cheapest, Costliest States For LPG

  • The price of liquified natural gas (LPG), also known as cooking gas, has hit a new high across the country
  • Currently, one kilogramme of cooking gas is approaching N2,000, with dealers and Nigerians lamenting the high cost of the product
  • The development has led to a decline in LPG usage among Nigerians, who now resort to alternative energy sources

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Some Nigerians and gas dealers in the Federal Capital Territory (FCT) have criticised the rising price of cooking gas and called on the Nigerian government to intervene urgently.

The News Agency of Nigeria (NAN) said dealers and residents expressed anger over the continued rise in the cost of the product and its effect on Nigerians and the cost of living.

Read also

After N106bn loss, Nigerian Breweries increases prices of Gulder, Star, others, second hike in 2024

Cooking gas prices rises again
Nigerians complain as cooking gas prices hit new high again Credit: Bloomberg/Creditor
Source: Getty Images

FG removes VAT on LPG

The development comes despite the Nigerian government removing import duty and value-added tax (VAT) from the product to make it affordable for Nigerians.

Cooking gas or liquified natural gas (LPG) is sold for between N1,300 and N1,600 per kilogramme, depending on the area and outlets.

NAN quotes a dealer identified as Promise Ajujumbu, the CEO of Promise of God Gas Company, saying that the continued price of LPG is due to high forex and transportation costs.

He asked the Nigerian government to intervene by increasing local gas production and stabilising foreign exchange, which was the reason for the price hike.

Ajujumbu stated that 20 tonnes of LPG, previously sold at N9 million, had spiked to N19 million.

The Nigerian Tribune reports that the dealers said that the high cost of transportation is also to blame for the rise in the product's price as most transport companies use diesel to move the product.

Read also

Nigeria’s external reserves rise by 2.83% as CBN says Nigeria witness upsurge in forex inflows

Data from the National Bureau of Statistics (NBS) said in its Cooking Gas Watch for January 2024 that the average price of 5kg of cooking gas rose from N4,962.87 recorded in December 2023 to N5,139.25 in January 2024.

According to the NBS report, the average price of 5kg of cooking gas increased every year by 12% from N4.588.75 recorded in January 2023 to N5,139.25 in January 2024.

The NBS zonal breakdown shows that the Northeast recorded the highest average price at N5,296.32 per kg of cooking gas, followed by North Central at N5,240.36.

A report by Legit.ng stated that the demand for Liquefied Petroleum Gas (LPG), commonly known as cooking gas, experienced a decline amidst increasing living expenses.

Despite numerous efforts by the federal government to enhance supply and encourage domestic use, this development has come.

The Nigerian Bureau of Statistics recently released data indicating a rise in the inflation rate from 28.92% in December 2023 to 29.90% in January 2024.

Read also

"We expect": UK research group predicts naira to hit N2,000/$ in 2024, makes 4 other forecasts

Subsequent market surveys have shown an increase in the price of 1kg of cooking gas, which has escalated from approximately N1,000 in January to around N1,200, varying depending on location.

NLNG supplies 493,000 metric tons of LPG

Legit.ng earlier reported that Nigeria LNG Limited (NLNG) denied reports that it supplied about 1.5 million tons of liquid petroleum Gas (LPG) to the domestic Nigerian market.

The company clarified that it provided nearly 500.000 metric tons of LPG annually to meet local demands.

The development was in pursuit of its commitment to deliver 100% of its LPG production to the domestic market, which was decided by the company’s board of directors.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

Online view pixel