"N1,200/kg:" World's Largest Cookstove Maker To Open Nigerian Plant as Cooking Gas Prices Rise

• The world's largest manufacturer of cookstove and LPG cylinders is planning to expand to Nigeria
• The company revealed that it had secured $10 million from its green bond issuance to expand its operations
• The development followed a report by NBS that the price of cooking gas in Nigeria skyrocketed for September

Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy

BURN Manufacturing, the world's largest cookstove manufacturer and distributor, plans to open a new plant in Lagos, Nigeria.

The Kenyan company issued the first-ever Sub-Saharan Africa's green bond.

BusinessDay reports that the company revealed on Friday, October 27, 2023, that proceeds from the $10 million bond will enable it to increase manufacturing in Kenya.

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The company hopes to increase production to 6,000 unit per month

The company said it expects production to rise from the current 400,000 units monthly to 600,000 and would produce a range of biomass electric and LPG stoves.

Peter Scott, BURN's CEO and founder, said the decision to issue the first-ever green bond highlights the company's strong belief in financial innovation to promote environmental and social change.

The price of cooking gas increase

The development comes as the National Bureau of Statistics (NBS) revealed that the average retail price for refiling a 5kg cylinder of cooking gas increased by 1.81% monthly from N4,115.32 recorded in August 2023 to N4,189.96 in September 2023.

The NBS stated that the price per litre of Kerosene in the same period was N1,299.03, showing an increase of 20.09% compared to the N1,272.40 recorded in August this year.

The report also said yearly, the price of cooking gas decreased by 6.36% from N4,474 in September 2022.

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Nigerian states with the highest gas prices

On a state-by-state analysis, NBS said Kwara state recorded the highest price for refiling a 5kg cylinder of cooking gas with N4,866,60, Benue followed by N4,786.26, and Adamawa with N4,785.71, respectively.

According to the Guardian, Ondo state recorded the lowest price with N3,34,62, followed by Ekiti and Edo State with N3,450.06 and N3,626.17.

Refill price for 12.5kg gas spikes

The retail price for refiling a 12.5kg gas cylinder spiked by 0.58% monthly, from N9,194.41 in August 2023 to N9,247.40 in September 2023.

Yearly, NBS says the price of cooking gas dropped by 6.65% from N9,906.44 in September 2022.

State analysis shows that Cross River recorded the highest average retail price for a 12.5kg cooking gas cylinder with N10,203.13, followed by Ogun with N9,967.11 and Nasarawa with N9,950.15.

Adamawa recorded the lowest average gas prices with N7,604.29, followed by Borno and Gombe states with N8,113.60 and N8,188.75, respectively.

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NBS reports that household Kerosene prices increased yearly by 37.13% from N947.30 in September 2022.

Adamawa recorded the highest price of Kerosene per litre, with N1,746.05, followed by Cross River with N1,541.67 and Abuja with N1,442.27.

Marketers identify the cabal behind the rising price of cooking gas in Nigeria

The development follows a report by LPG marketers in Nigeria that depot owners are responsible for the high prices in Nigeria.

The cooking gas marketers under the Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM) have accused the Liquified Petroleum Gas (LPG) terminal operators of causing the country's high cooking gas cost.

Oladapo Olatubosun, the association's president, disclosed this when they met the Senate Committee on Gas in the company of the group members on Monday, October 23, 2023.

The commodity's price recently increased to N1,200 per kilogram, with many Nigerians lamenting its high cost amid surging inflation and high living standards.

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N1,000 per Kg: Nigerians lament increase in cooking gas price as country celebrates 63rd anniversary

In an earlier report by Legit.ng, Nigerians expressed dissatisfaction with the hike in the price of cooking gas, which reportedly hit over N1,000 per kilogram (Kg).

Those who bought cooking gas recently told Legit.ng they were unhappy with the increase in cooking gas prices and how hardship in Nigeria persists.

Source: Legit.ng