Dealers Crash Cooking Gas Price to N1,100 Per Kg as Stronger Naira Pushes Down Costs
- The price of liquified natural gas (LPG), also known as cooking gas, is beginning to moderate as naira gains in all the markets
- Dealers and sellers crashed the price of the product which sold for N1,500 to about 1,100 per kilogramme
- The dealers attributed the price crash to the appreciation of the naira against the dollar, as the commodity is chiefly imported
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Prices of liquified natural gas (LPG), also known as cooking gas, are beginning to crash following the appreciation of the Nigerian currency, the naira.
Findings by Legit.ng showed that sellers crashed cooking gas prices from N1,500 per kg to about N1,100.
Source: Getty Images
Cooking gas price crashes from N1,500/kg
In March 2024, some Nigerians and gas dealers in the Federal Capital Territory (FCT) criticised the rising price of cooking gas and called on the Nigerian government to intervene urgently.
The News Agency of Nigeria (NAN) reported that 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.
However, a market survey by Legit.ng shows that dealers have brought down the commodity price.
Cooking gas price in Lagos
At a Gasland plant in the Iju-Ishaga area of Lagos, the product's retail price was as low as N1,100 per kg, down from the N1,500 it sold in March.
A 12.5kg of gas sold for N14.400 two weeks ago now sells for N13.300.
A Gasland plant manager who spoke anonymously attributed the price crash to the availability of forex for imports, saying the naira gains have contributed to the price reduction.
“Everyone knows that the dollar is crashing, and Nigeria imports most of the LPG consumed there. So, we can say the naira gain is helping to push down the cost of the commodity.
“Two or three weeks ago, our facility sold 12.5 kg for as high as N15,600 because of the scarcity of forex. Also, we had mostly old stocks purchased using the exchange rate of N1,500 per dollar.
“But now that the FX is hovering between N1,200 and N1,100 per dollar, it will be absurd to continue to sell at the old price it sold when forex was scarce and high.
Naira gains help improve cooking gas price
He said prices may crash further if the Central Bank of Nigeria (CBN) continues its forex interventions.
The naira has been trading at a high of N1,100 per dollar in the parallel market and N1,148 per dollar in the official market, up from the N1,600 it traded in February and early March 2024.
The Nigerian government included LPG among items that qualified for tax waiver to reduce the cost of the product.
Cheaper cooking gas coming to Nigeria
Legit.ng reported that Nigeria LNG Limited (NLNG) supplies about 1.5 million tons of LPG to the domestic Nigerian market.
The company clarified that it provides nearly 500.000 metric tons of LPG annually to meet local demands.
This development is in pursuit of the company's commitment to deliver 100% of its LPG production to the domestic market, which was decided by the company’s board of directors.
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Source: Legit.ng
