Cooking Gas Prices Rise as NLNG Vessel Arrives Nigeria to Load Product to Portugal

• The prices of cooking gas have increased again as dealers attribute the rise to the fall of the naira
• The dealers say they are batting supply and exchange rate challenges following the crash of the naira above N1,600
• The development follows the arrival of a chartered vessel by Nigeria LNG Limited to load LNG to Portugal

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Cooking gas prices have risen again after moderating for most of July due to supply availability.

Findings by Legit.ng show that the price of 12.5kg of cooking gas refill rose to N14,500 from the N13,000 it sold a few weeks ago.

The price of 1kg of cooking gas rose to N1,200 from N900, and the price of 6kg of cooking increased to N7,200 from N5,100.

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Naira crash affects cooking gas prices

Dealers attribute the rise to the crash of the Nigerian currency, which has depreciated above N1,600 per dollar.

Shortly after the CBN sold dollars to authorised dealers, the naira crashed again in the official and parallel markets.

The naira crashed to N1,609 on Friday, July 26, 2024, in the official market against the N1,606 it traded the previous day.

The naira also crashed in the parallel end of the foreign exchange market, trading at N1,510 per dollar.

Dealers blame supply challenges

Cooking gas dealers also say supply has been an issue as most cargoes are still coming to Nigeria.

A manager at one of the gas depots in the Iju-Ishaga area of Lagos said that the price of cooking gas responds to changes in exchange rates.

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If the naira crashes, the prices of imported items, especially liquified petroleum gas (LPG), known as cooking gas, rise.

“So, the only way to contain hikes in prices of items, especially cooking gas, is to contain the exchange rate. Most of the LPG used in this country is imported as the NLNG hardly produces enough,” the manager said.

NLN vessel arrives for loading to Portugal

Meanwhile, a new state-of-the-art vessel, AKTORA, chartered by Nigeria LNG Limited, has arrived at the company’s Bonny for its maiden LNG loading.

According to reports, after loading her first cargo at Bonny Terminal, the vessel would proceed to Sines LNG Terminal, Portugal, for the first discharge.

The vessel charter is reportedly a strategic move to diversify and reduce the carbon footprint of the firm’s shipping portfolio,

A statement by Sophia Horsfall, NLNG’s corporate communication and public affairs manager, disclosed that the vessel was equipped with a mega propulsion system with advanced technologies and a cutting-edge design to reduce emissions and increase efficiency.

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Data shows states with highest prices of cooking gas

Legit.ng earlier reported that the National Bureau of Statistics had revealed that the average price for refiling a 5kg Liquefied Petroleum Gas (cooking gas) cylinder in Nigeria stood at N6,591.62 in March 2024.

This represents a 7.10% increase compared to the N4,562.51 average price recorded in February 2024, which was N6,154.50,.

On a year-on-year basis, cooking gas prices increased by 42.97% from the N4,610.48 that was paid in March 2023.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng