Dealers Slash Cooking Gas Prices, Announce New Cost in Lagos, Other Regions
- Cooking gas prices have dropped significantly, retailing for between N950 and N1,300 in various places
- According to a Legit.ng market analysis, a kilogram of gas currently costs N1,300 at retail establishments
- However, other dealers asserted that they might purchase the gas at wholesale retailers at a lower price
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The price of cooking gas has declined sharply, selling between N950 to N1,300 per kilogram across different regions.
Source: Getty Images
A market survey carried out by Legit.ng showed that the price of 1kg gas was now N1,300 at retail stores. This is a significant decline from the N1,500 which it sold about a month ago.
However, some traders claimed that they were able to buy the product at a more discounted price at some filling station stores for as low as N1,100 per kg.
Kafayat Komolafe said:
“This morning, I went to refill and to my surprise, the price had reduced drastically to N1,300. The last time I filled was about 2 months ago at N1,500."
Idaya Folorunsho noted that she went to refill her gas cylinder as soon as she heard the price had been reduced.
“You know this is Nigeria. When things go down, we just have to seize the opportunity because we don’t know what will happen tomorrow.”
Source: UGC
When asked if the price could go less than N1,300 for customers who are filling as much as 10kg and above, a trader, Ikenna Peter, said:
“We sell directly to consumers and it is whatever we buy that we will sell. Those who claim they bout at a cheaper rate less than N1,300 per kg probably bought at filling stations where they sell at wholesale prices. But you can’t compare us to those people with big tanks."
“In this country, we are our own problems. How can some people be selling cooking gas for 1,300 per kg and then you go to other places to buy for N1,150? Not everything is about the government, we the people - especially traders - also need to check ourselves and do things with the fear of God."
Meanwhile, Kunle Ajami, a manager of a cooking gas plant in Lagos, told Legit.ng that the price adjustment started a month ago.
"There is a massive drop compared to what people were paying last year. We sell cooking gas based on how we buy from marketers. If the price is high, we adjust."
In some places like Kaduna, however, cooking gas prices reportedly dropped to as low as N950 per kg.
Source: Getty Images
Analyst explains factors driving cooking gas price reduction
Energy analyst, Adeola Yusuf, shared insights on the recent drop in cooking gas prices in Nigeria, emphasising key contributing factors.
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Yusuf told Legit.ng:
“It is a deregulated product, and a lot of factors including international pricing mechanisms are contributing to its deep drop across the country.”
“What they use for the product blending is imported, and even the increase in volume we are getting in-country, particularly the pricing in the international market for oil and gas, are tremendously responsible for that low price.”
He also noted,
“If you put side by side, you’d see that the price of crude, yesterday (Sunday, April 6), sold at 65 dollars per barrel, so that will mean that very shortly we are to experience that same trend in the pricing for other petroleum products.”
LPG price drop: Analyst cites dollar rate, global market shifts
Oil and gas analyst Cyrus Ademola has linked the recent drop in cooking gas prices in Nigeria to falling global Liquified Petroleum Gas (LPG) prices and naira stability.
"The price of the commodity has reduced globally. Since LPG is priced in the international market, it is expected for the price to reflect in the retail market in Nigeria," Ademola told Legit.ng.
"According to GlobalPetrolPrices, price of LPG fell from about $1 per liter to $0.75 in the last month," he added.
Ademola, Managing Editor of Energy in Africa, noted that the drop, though small per unit, creates significant savings in bulk purchases.
"In addition, the naira has stabilized against the dollar in a few weeks, making international transactions such as the sale of gas more cheaper. The more liquidity in the foreign exchange market and stability in the price of gas will be," he added.
FG moves to peg cooking gas price
The Federal Government earlier said it is planning to introduce a new pricing system for cooking gas in Nigeria.
Right now, only about 30% of households in cities across the country use cooking gas.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the government is putting special policies in place to help more people start using cooking gas by removing barriers that stop investors from coming into the sector.
He said tax waivers have been given for importing cooking gas and gas equipment, and the process for bringing in gas cylinders and other items has been made easier.
The government has also stopped the export of locally made cooking gas so that more of it can be used within the country, helping reduce the pressure of high prices on Nigerians.
Dealers announce gas prices in Lagos, other areas
Legit.ng reported that the Nigeria Bureau of Statistics (NBS) reported that between December 2023 and December 2024, the average price of Liquefied Petroleum Gas (LPG), also referred to as cooking gas, increased by 44.62%.
Refilling a 5kg cylinder cost an average of N7,177.27 in December 2024, as opposed to N4,962.87 in December 2023, according to the NBS Liquefied Petroleum Gas Price Watch, an increase of 1.26 per cent from the month before.
Editorial assistant Ololade Olatimehin provided exclusive commentary from an energy analyst as well as a oil and gas analyst for this report.
This article has been updated by head of business desk, Victor Enengedi, with additional information.
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Source: Legit.ng
