Again, Cooking Gas Prices Change, Dealers Warn of Scarcity
- There are concerns that Nigeria may face cooking gas scarcity due to the Dangote Refinery being the only major supplier
- This shortage could lead to another price increase following the recent rise from about N900 per kilogram
- Experts warn that dependence on a single producer could cause recurring shortages and further price hikes
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends
The cost of refilling Liquefied Petroleum Gas (LPG), also known as cooking gas, is expected to increase again.
Retailers have raised the alarm that cooking gas supplies are once more reducing, and any further disruption could trigger sharp price increases.
Source: Getty Images
Across the country, the price of cooking gas now ranges between N1,200 and N1,500 per kilogram, depending on the location, an increase from about N900/kg.
In October, dealers quoted cooking gas at as high as N2,300 per keg during the last shortage caused by the Dangote and PENGASSAN strike.
Dealers express concern of less supply option
Punch reports that the retailers said the furtheris currently the only major supplier of LPG to the domestic market.
Retailers warned that the Dangote Refinery is currently the only major supplier of LPG to the domestic market
In Abeokuta, Ogun State, a retailer identified only as Adesola lamented the uncertain outlook, saying:
“There hasn’t been any significant improvement in LPG supply. At this point, we’re uncertain about what the situation will look like in the coming days or weeks.”
Ayobami Olarinoye, National Chairman of the Liquefied Petroleum Gas Retailers (LPGAR) under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), stated that the Dangote Refinery’s production alone is insufficient to meet Nigeria’s domestic demand.
Olarinoye explained:
“As of now, the Dangote Refinery remains the sole supplier of cooking gas in the market.
“Although we commend the refinery’s effort in supplying gas, its current production volume is far below the country’s consumption needs.”
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He further noted that many depots have exhausted their stock, leading to a growing supply deficit.
Source: Getty Images
New cooking gas price
According to him, the price gap between Dangote’s refinery output and rates set by intermediaries has also discouraged other marketers from importing gas.
He said:
“There’s a need to address the price gap preventing other players from bringing in products for normalcy to return.”
Olarinoye warned that prices could spike again if Dangote halts operations for maintenance.
He said:
“If Dangote does not go on maintenance that halts production, we’ll keep working within the current range."
States where cooking gas is most expensive
Earlier, Legit.ng reported that the price of cooking gas varies across the states.
A 5kg cylinder with LPG, Abia state recorded the highest price at N9,181.20.
Other states that cost above N9,000 for a 5kg cylinder refill include Ebonyi at N9,177.32 and Rivers at N9,174.40.
The 5kg cylinder refill of cooking gas is cheapest in Oyo, Niger and Plateau states at N7,116.49, N7,142.07, and N7,177.10, respectively.
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Source: Legit.ng
