The price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, in Nigeria has remained a concern for households in Nigeria as it continues to fluctuate due to many factors.
Many leave the vending stations completely frustrated.
The price fluctuations across the country have been largely influenced by transportation costs, foreign exchange rates, and local demand-supply dynamics.
Key Factors Influencing Prices
- International Market Prices: The price of cooking gas in Nigeria is heavily influenced by global LPG prices. Nigeria imports a significant portion of its LPG, which makes the domestic price sensitive to international market dynamics.
- Exchange Rate Volatility: The fluctuation in the naira against the dollar has played a significant role in determining the cost of imported LPG. As the naira weakens, import costs rise, directly impacting the retail price of cooking gas.
- Transportation Costs: The high cost of transportation, primarily due to elevated fuel prices, has increased the overall cost of distributing LPG from depots to end-users, especially in regions far from the coastal depots.
- Demand-Supply Dynamics: Post-festive season demand has seen a slight drop, causing minor price reductions in some locations. However, areas with supply bottlenecks or higher demand still report higher prices.
- Domestic Supply Challenges: Despite Nigeria being a gas-rich nation, inadequate local refining and processing facilities result in reliance on imports, leaving the market exposed to international price swings.
Price ranges:
- 1kg – ₦1,300
- 3kg – ₦3,900
- 5kg – ₦6,500
- 6kg – ₦7,800
- 10kg – ₦13,000
- 12.5kg – ₦16,250
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