Good News: Retailers Announce New Price for Cooking Gas, N1,000 Cheaper
- The price of cooking gas dropped in recent days, bringing relief to households after weeks of battling high costs
- LPG Retailers Association chairman, Ayobami Olarinoye, confirmed the development and shared expectations
- Industry players called for stronger regulatory oversight to ensure Nigerians paid the fair market price
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The price of liquefied petroleum gas (LPG), also known as cooking gas, has reduced, a major relief for Nigerians who, in the past few weeks, have been forced to pay as much as N2,500 per kilogramme.
Checks show that retailers are now selling between N1,300 and N1,500, and there is hope it could fall further in the days ahead.
Source: Getty Images
Confirming the development, Ayobami Olarinoye, chairman of the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGARAN), said supply to the market had improved, though the situation was still stabilising, Punch reports.
He said:
“The product is gradually circulating. There is an increase in supply. The price is dropping but not yet back to the former rate. It is now between N1,300 and N1,600, depending on location."
He noted that while the LPG market remained unstable, further improvement was expected this week if supply continued.
Olarinoye added:
“Although the market is still a bit unstable, the situation is improving fast. If supply continues, we should see stability within the next week.”
Why cooking gas price is rising
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) blamed retailers for the recent surge in prices, a claim Olarinoye dismissed as “unfair and misguided.”
Retailers had also complained about price distortions between what the Dangote Refinery sells to off-takers and what these distributors resell to the market.
Olarinoye disclosed that Dangote sold LPG at N15.8 million per 20,000 metric tonnes, but off-takers resold the same volume between N18.4 million and N18.5 million to retailers.
Source: Getty Images
Cable reports that marketers currently lift products at between N715,000 and N790,000 per metric tonne, equivalent to N715/kg/.
A source at Dangote refinery said that the prices in the retail end are not within its purview.
He said:
"We don’t fix retail prices. According to the Petroleum Industry Act and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, only the government can fix prices.
"If marketers sell at N2,000/kg after buying at N715/kg, there’s nothing we can do.”
Industry players said sustained supply and regulatory oversight will be key to ensuring further price reductions in the coming weeks.
Nigerians who confirmed the drop expressed relief and joy, but many said they are still waiting for prices to return to around N900/kg, which they consider a fair price given how much Dangote sells to marketers.
Why cooking price increased?
Earlier, Legit.ng reported that cooking gas skyrocketed in recent days due to scarcity in major cities such as Lagos, Ibadan, and Abeokuta.
Residents in Lagos over the weekend paid as much as N3,200 per kilogram, a 190% increase compared to the previous price of N1,100 per kg.
The new prices released by many dealers mean it would cost N32,000 to refill a 10kg cylinder of cooking gas.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
