Rising Cooking Gas Prices in Nigeria: Key Trends and Drivers
The price of cooking gas, or Liquefied Petroleum Gas (LPG), has soared in Nigeria, affecting household budgets and sparking widespread concern. As of December 3, 2024, the average retail price for refilling a 12.5kg cylinder has risen to ₦17,000—a staggering 41.6% increase from ₦12,000 in July 2024.
Historical Price Trends
The upward trajectory of cooking gas prices has been notable over the past two years:
- February 2023: A 5kg cylinder refill cost an average of ₦4,600.57.
- May 2024: The price rose to ₦7,418.45 for the same 5kg cylinder, marking a 70.12% year-on-year increase.
- October 2024: A 12.5kg cylinder refill averaged ₦16,734.55, up by 58.68% compared to October 2023.
Regional Price Variations
Prices vary significantly across Nigeria due to transportation costs, regional demand, and supply chain inefficiencies:
- North-East: Borno State reported the highest average price for refilling a 5kg cylinder at ₦7,939.29.
- North-West: Katsina State had the lowest average price for the same 5kg refill at ₦6,270.
Current LPG Prices Per Kilogram
- 1kg: ₦1,400
- 3kg: ₦4,200
- 5kg: ₦7,000
- 6kg: ₦8,400
- 10kg: ₦14,000
- 12.5kg: ₦17,500
Key Factors Driving Price Instability
- Supply Constraints
Despite Nigeria’s vast natural gas reserves, domestic production falls short of demand. Heavy reliance on imports exposes the market to global price volatility. - Global Market Dynamics
Fluctuations in international energy prices directly impact local LPG costs. As global markets tighten, Nigerian consumers bear the brunt of price increases. - Currency Depreciation
The naira’s devaluation against major currencies has made LPG imports and related equipment more expensive, driving up consumer prices. - Infrastructure Challenges
Inadequate storage facilities, limited transportation networks, and poor distribution infrastructure create supply bottlenecks, further exacerbating price disparities across regions. - Government Policies
Recent economic policies, such as the removal of petrol subsidies and currency devaluation, have increased transportation and operational costs, indirectly influencing LPG prices.
Government Interventions and Limitations
In a bid to address the issue, the Nigerian government banned LPG exports to bolster domestic supply. However, this measure has yet to significantly lower prices due to persistent supply chain inefficiencies and global market pressures.
Implications for Households
The rapid rise in cooking gas prices is straining household budgets, forcing many families to consider alternative, less efficient energy sources such as firewood or kerosene. These alternatives pose environmental and health risks, underscoring the urgent need for more sustainable solutions.
Conclusion
The surging price of LPG in Nigeria reflects deeper systemic issues, including currency instability, inadequate infrastructure, and global energy market dependencies. While government interventions aim to stabilize supply, a holistic approach—investing in infrastructure, boosting domestic production, and addressing currency challenges—is necessary to achieve long-term relief for Nigerian households.
