A recently conducted survey has revealed that the price of domestic cooking gas in Nigeria has crashed to its lowest in the last four months.
Dealers attribute the reduction to a combination of government actions, including the removal of Value Added Tax (VAT) and import duty on cooking gas to boost local supplies as well as the relative stability of the naira to the dollar in the foreign exchange market.
Also, the government began the free distribution of one million unrestrained LPG cylinders nationwide to enhance access.
Market checks indicate that the current price of cooking gas has crashed below ₦900 per kilogram for the first time in four months.
The first time cooking gas was sold below ₦800 was early in 2024, when dealers announced a price reduction after it hit ₦1,300 per kilogram.
According to dealers, the government needs to sustain the effort to keep the price reduced and ensure cooking gas remains affordable for Nigerians.
A manager at Gasland, who spoke anonymously with Legit, confirmed the reduction in price.
He said: “Dealers are now accessing forex relatively easily in the official market, making import easy. Also, the government has removed some bottlenecks such as VAT and import duties.
“Recently, the government began the distribution of unrestrained gas cylinders to Nigerians to enhance access to LPG use. The action is commendable because no one with a cylinder will leave it idle.
“Also, the government needs to provide some interventions to marketers to allow them to import more of the product, which will lead to a price crash.”