“No More N1,050 per 1kg”: Nigerians Speculate as Dealers Hike Cooking Gas Prices Again

• Nigerians have asked the Nigerian government to intervene and reduce cooking gas prices
• A report has disclosed that the commodity’s price has risen from N1,050 to between N1,300 and N1,400 per 1k
• Market survey shows that 12.5kg refill rose from N1,400 to between 16,000 to N17,000, depending on the location

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

Despite the government's interventions, many Nigerians have continued to decry the rising cost of liquified petroleum gas (LPG), popularly called cooking gas.

Some Abuja residents told the News Agency of Nigeria (NAN) on Sunday, September 15, 2024, that the government must urgently take action against the rising commodity cost.

One kilogramme now sells for N1,400

They say the move would alleviate and ease some of the challenges facing Nigerians.

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According to NAN, 1kg of cooking is sold for N1,300 and N1,400, depending on the area of purchase, and the 12.5kg cylinder refill now costs between N16,000 and N17,000, as against N12,500 to N13,00 in June and July.

A previous report by Legit.ng shows that cooking gas prices dropped to as low as N1,050 per kilogramme in June and July.

Monthly breakdown of cooking gas prices

However, the subsequent price hike began to reflect in August, with analysts saying it erodes household incomes.

The National Bureau of Statistics (NBS) said in Cooking Gas Price Watch for July that the average price for refilling a 5kg cooking gas declined by 14.3% month on month from N6.9666.03 recorded in June.

The national statistics body also disclosed that the retail price for refilling 12.5kg of cooking gas dropped by 9.37% monthly from N15,736.736 in June to N14,261 in July 2024.

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During a market survey, the dealers who spoke to Legit.ng complained that they find it challenging to source forex from official channels, often leaving them dependent on the black market dealers.

Marketers give reasons for price increases

“We often patronise street dealers when looking for FX to import cooking gas, and that is at a prohibitive cost,” a Gasland, Iju branch manager, who asked for anonymity and told Legit.ng.

He disclosed that despite the Nigerian government removing Value Added Tax (VAT) and import duty on LPG, the price remains high due to the high forex cost.

“When the dollar was exchanging for about N1,200, the commodity’s price was about N700 per kilogramme. There was even a time when we sold the product at N500 per kilogramme because we could access FX relatively quickly and cheaply in the official markets.

“Now that FX is approaching N2,000 per dollar, it’s tough sourcing FX to import the product,” he said.

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Companies announce free 3kg 6kg cooking gas cylinders

Legit.ng earlier reported that With a short- to medium-term goal of reaching over 500,000 homes, Women in Energy Network (WIEN), in collaboration with Smart Gas Limited, is looking to distribute 100,000 units of 3kg and 6kg gas cylinders to households across the 774 LGAs.

According to WEIN President Eyono Fatai-Williams, the recent LPG distribution initiative is critical to the nation's fuel diversification and economic sustainability goals.

She mentioned the advantages of switching to LPG and emphasised how lowering household air pollution improves public health.

Source: Legit.ng