Cooking Gas Dealers Announce New Prices as Supply Improves

• Cooking gas dealers have crashed the price of the product further following improved supply and forex availability
• The dealers said the price of refilling 12.5kg of cooking gas crashed from N14,000 to about N10,000
• Findings show that the crash also comes following the relative gain of the naira against the US dollar

Legit.ng Pascal Oparada has been reporting on tech, energy, stocks, investment, and the economy for over a decade.

Findings by Legit.ng show that dealers of liquified petroleum gas (LPG), also known as cooking gas, have crashed the commodity's price following supply improvements.

According to a market survey conducted by Legit.ng, the dealers have crashed the product's price to N900 per kilogramme from the N1,300 it sold weeks ago.

Read also

“It’ll boost the naira”: Nigerians abroad send home $282m as remittances in 3 months

LPG dealers report improvements in supplies

The dealers reported improvements in supplies from various depots, saying that the price also crashed due to the relative availability of foreign exchange for import.

A manager at Gasland depot in the Iju-Ishaga area of Lagos, who pleaded anonymity, revealed that the price crash also followed the Nigerian government's removal of value-added tax (VAT) from the product.

"We are witnessing supply improvements, and more marketers can access the products. Also, we have noticed an improvement in forex availability for importers to bring in the product."

He stated that the depot sold the product at N1,300 per kilogramme two weeks ago but crashed the price to N900.

He revealed that 12.5kg sells for about N10,000 from the N14,300 it sold two weeks prior.

Read also

CBN adjusts import duty rate again after naira’s crash against dollar

LPG price crashes from N15,000 per 12.5kg

Recent data from the National Bureau of Statistics (NBS) disclosed that the price of 12.5kg of LPG increased by 46.88% in one year.

The NBS revealed this in its annual LPG price watch report for February.

The NBS said the price of refilling 12.5kg of cooking gas increased to N15,060.38, compared to N10,253.39 in the month under review.

The report said the average price for refilling a 12.5kg cooking gas cylinder rose by 28.33% in one month, from N11.735.72 in January 2024 to N15,060.38 in February 2024, TheCable reported.

The report said:

The bureau said that "on a year-on-year basis, this rose by 46.88% from N10,253.39 in February 2023." 

"On state profile analysis, Ogun recorded the highest average retail price for the refilling of a 12.5kg Cylinder of Liquefied Petroleum Gas (Cooking Gas) with N16,375.00, followed by Delta with N16,333.33 and Edo with N16,321.43.

Read also

Naira continues free fall in all markets as Africa’s largest bank predicts New FX rate in 2024

"Conversely, Bauchi recorded the lowest average price, N13,167.50, followed by Katsina and Yobe, with N13,562.50 and N13,610.00, respectively."

Cooking gas demand declines

Legit.ng also reported that the demand for cooking gas recorded a decline amid increasing living expenses.

This development comes as numerous efforts by the federal government to enhance supply and encourage domestic usage failed.

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.

Source: Legit.ng