Dangote Refinery, NIPCO, Rainoil, Others Raise Cooking Gas Prices as LPG Hits Over N2,000/kg
- Nigerians are facing rising cooking gas prices amid increased depot rates by major suppliers
- Geopolitical tensions and global market volatility are driving energy price instability
- Experts urge government intervention to alleviate consumer burdens from rising energy costs
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerians are facing another wave of rising energy costs after Dangote Refinery and several major depot operators increased the prices of liquefied petroleum gas (LPG), commonly known as cooking gas.
The latest adjustment, which has pushed depot prices up by more than N100 per kilogramme in some locations, is expected to further strain household budgets already stretched by rising food prices, transportation costs, and broader inflationary pressures.
Source: UGC
Industry observers attribute the increase to ongoing volatility in the international crude oil market, which continues to influence the pricing of petroleum products across the globe.
Global market uncertainty drives price increase
The hike comes amid growing concerns over geopolitical tensions affecting global energy supply chains.
Analysts have warned that petroleum product prices may remain unstable until there is greater certainty surrounding developments in the Strait of Hormuz, one of the world's most strategic oil shipping routes.
Any disruption in the waterway, through which a significant share of global crude exports passes, has the potential to affect energy prices worldwide, including LPG prices in Nigeria.
As a result, depot operators have adjusted their pricing structures to protect themselves against possible losses and rising replacement costs.
Dangote, Rainoil, NIPCO and others adjust LPG rates
Data tracked by PetroleumPriceNG shows that several leading LPG suppliers have revised their ex-depot prices upward.
Dangote Refinery increased its LPG price to N1,250 per kilogram from N1,200 previously. Rainoil Lagos recorded one of the highest increases, raising its price by N160 per kilogramme from N1,120.
Other major operators also reviewed their prices upward. Stopgap fixed its LPG price at N1,250 per kilogramme, while NAVGAS adjusted its rate to N1,200 per kilogramme. NIPCO Lagos now sells the product at N1,275 per kilogramme.
The adjustments reflect efforts by marketers and depot operators to align with prevailing market realities and anticipated supply costs.
Retail consumers feel the impact
The increase at the depot level is already being passed on to consumers across the country.
Market checks indicate that retail LPG prices now range between N1,600 and N2,000 per kilogramme, depending on location, transportation costs, and distribution margins.
For many households that rely on cooking gas as their primary source of energy, the latest increase could significantly raise monthly expenses.
Calls for government intervention grow
In response to the rising costs, energy and financial experts are urging the Federal Government to consider temporary measures to cushion the impact on consumers.
Financial analyst Osas Igho said a short-term subsidy or targeted support programme could help struggling families cope with the increasing cost of living.
Source: Getty Images
“Right now, Nigerians urgently need the government’s intervention to cushion the hardship and provide a soft landing for families already struggling with the harsh economic climate,” Osas Igho, a financial analyst, told Legit.ng in a telephone interview.
According to him, many Nigerians are already battling economic hardship, making further increases in essential commodities such as cooking gas particularly difficult to absorb.
For now, consumers can only hope for greater stability in global energy markets, as continued volatility may trigger further adjustments in LPG prices in the weeks ahead.
Cooking gas price rises again
Legit.ng earlier reported that Nigeria's cooking gas prices continued to trend upwards, increasing the current pressure on households already dealing with inflation, high food prices and soaring energy costs throughout the country.
Industry figures and market reviews indicate that liquefied petroleum gas (LPG) now goes for above N1,500/kg in several cities from the previous average price of N1,300, and dealers warned of more rise if the supply situation remains critical.
Operators attribute the rise to supply squeeze in depots, high replacement cost, logistical hiccups, and foreign exchange pressure influencing importation and distribution of LPG.
Source: Legit.ng
