Dealers Announce New Cooking Gas Price in Lagos, Edo, Others as Report Shows Highest, Lowest States
- Retail prices for Liquefied Petroleum Gas (LPG) differed greatly between Nigerian cities in October 2024
- This demonstrates the unique supply-demand relationships and logistical issues that every region deals with
- A survey has shown that the average price of a 12.5 kilogram cylinder of LPG in all cities was almost N17,226
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
A new survey has found that the retail pricing of Liquefied Petroleum Gas (LPG) varied significantly throughout Nigerian cities in October 2024, indicative of the distinct supply-demand dynamics and logistical considerations that each area faces.
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The impact of regional distribution costs, infrastructure quality, and perhaps the degree of market competition is highlighted by the volatility in LPG pricing.
Customers who depend on LPG for basic necessities benefit from more reasonable options made possible by lower costs in areas like Ijebu Ode and CMD Road (Lagos).
Reducing these pricing differences through enhanced accessibility and supply chains may increase the availability of reasonably priced LPG throughout Nigeria.
States with higher and lower prices
Port Harcourt, Ojo (Lagos state), CMS Lagos, and Edo had the highest prices, with costs of N18,750 per 12.5 kg cylinder, which is equivalent to N1,500 per kilogram.
In addition to local demand dynamics, the greater transportation and distribution costs could be associated with the cause of the higher prices in these areas.
On the other hand, customers paid N14,375 for a 12.5 kilogram cylinder, or N1,150 per kg, for Ijebu Ode, which had the lowest pricing, while prices at CMD Road in Lagos were reasonably priced at N15,500 (N1,240 per kg).
It is believed that better accessibility or more affordable prices from local sources may be the cause of these reduced costs.
In general, a 12.5 kg cylinder of LPG cost about N17,226 on average across all cities. This indicated a modest price range for the majority of Nigerian consumers, with an average cost per kilogram at roughly N1,378.
In Lagos, pricing ranged greatly; CMD Road had one of the lowest costs at N15,500 for 12.5 kg, while prices in Ojo and CMS were higher at N18,750.
LPG blog reported that the disparity in pricing highlights the various logistical and economic circumstances in Lagos.
Prices were moderate in cities including Enugu, Kogi, Port Harcourt, and Nassarawa, with 12.5 kilogram cylinders often costing between N16,250 and N17,500. These mid-range costs imply that the LPG distribution networks in these areas are comparatively stable.
Speaking on the differences in pricing, Akubo Elder called on the government to inrevene in the gas industry.
"The price of cooking gas fluctutes frequently and little things like this affects household planning especially for those that earn salary."
"It is high time the government intervened so that pricing in the industry could be a bit more stable."
Companies announce free 3kg, 6kg cooking gas cylinders
Legit.ng 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 of 100,000 units of 3kg and 6kg gas cylinders to households across the 774 LGAs.
The recent LPG distribution initiative serves as a critical step in line with the nation's fuel diversification and economic sustainability goals, according to WEIN President Eyono Fatai-Williams.
She mentioned the health advantages of switching to LPG and emphasized how lowering household air pollution contributes to better public health.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
Source: Legit.ng
