N1,650/kg: Cooking Gas Price Rise in Abuja as Lagos Depots Rise to New Levels
- Abuja residents are facing high cooking gas prices, with rates hitting record levels as crude oil prices spike globally
- Checks in the Abuja metropolis confirm that cooking gas prices climbed near March levels, when the product sold for about N2,000 per kilogramme
- According to recent data, Lagos depot prices have also edged up slightly, adding pressure to households already battling high inflation rates
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian households are facing fresh uncertainty over cooking gas prices as Liquefied Petroleum Gas (LPG) prices in parts of Abuja remain as high as N1,650 per kilogramme, while depot prices in Lagos have started edging upward.
Checks in the Federal Capital Territory show that cooking gas currently sells for between N1,250 and N1,650 per kilogramme, depending on location, retailer and whether consumers buy from major outlets or roadside vendors.
Source: Getty Images
At these rates, filling a 5kg cylinder costs between N6,250 and N8,250, while a 12.5kg cylinder could cost between N15,625 and N20,625.
Although the prices represent a significant improvement from the nearly N2,000 per kilogramme recorded in some parts of Abuja earlier in the year, consumers say cooking gas remains too expensive for many low- and middle-income families.
Abuja consumers fear another price surge
Residents say the recent moderation has provided some relief, but the gains could quickly disappear if wholesale and depot prices continue climbing.
In June, LPG sold for between N1,498 and N1,650 per kilogramme in Abuja, with some roadside retailers charging as much as N1,850.
Consumers have therefore urged the government and industry operators to focus not only on reducing prices but also on keeping them stable.
The concern is particularly significant for households already battling high food, transportation and other living costs.
Lagos depots begin raising rates
Meanwhile, LPG depot prices in Lagos have reportedly risen in recent days amid renewed pressure from higher global crude oil prices.
Data from PetroleumPriceNG showed that some major depot operators adjusted their rates upward as a precaution against rising international crude prices.
AYM Shafa was listed at about N1,050 per kilogramme, while Ardova Plc was selling at N975. NIPCO Lagos and 11Plc were both pegged at about N980 per kilogramme.
The increase at the depot level is significant because movements in wholesale prices can eventually filter through to distributors, retailers and, ultimately, households.
Supply remains key to cheaper LPG
Energy expert Chris Mordi attributed the recent moderation in consumer prices largely to improved product availability and easing supply constraints across the downstream market.
According to him, better alignment between supply and demand, increased competition among suppliers and lower depot prices had helped push retail prices down.
However, he warned that the outlook would depend on transportation and logistics costs, distribution margins, exchange-rate movements and the sustainability of domestic LPG supply.
If improved supply is sustained without major disruptions, further price moderation could still occur. But renewed pressure on crude prices, imports or logistics could quickly reverse the trend.
FG intensifies efforts to stabilise prices
The Federal Government has already moved to tackle some of the factors driving LPG prices.
On June 22, Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, directed regulators and security agencies to intensify surveillance and clamp down on hoarding and diversion of LPG.
The government also said it was working to increase domestic supply, reduce import dependence and prioritise locally produced LPG for Nigerian consumers.
Source: UGC
Plans for an LPG blending initiative involving Nigeria LNG, local producers and the Port Harcourt plant operator are also aimed at reducing logistics costs and improving supply reliability.
For Nigerian households, however, the real test will be whether these measures can translate into consistently cheaper cooking gas at retail outlets, rather than temporary price relief followed by another painful increase.
Cooking gas prices crash after sudden hike
Legit.ng earlier reported that the Nigerian cooking gas market has taken another unexpected turn, with some major depots reducing their prices just 24 hours after a sharp increase sent LPG costs higher.
The price of liquefied petroleum gas, commonly known as cooking gas, has continued to fluctuate, creating uncertainty for households, retailers and businesses across the country.
Source: Legit.ng
