A market survey has shown that the price of liquified natural gas (LPG), also known as cooking gas is beginning to drop as the value of the naira continues to appreciate.
Households and other stakeholders had lamented the spiraling prices in February and March.
However, a recent survey shows that some dealers have crashed the prices from ₦1,500 per kg to about ₦1,100 due to Naira gains in all the markets.
At the Gasland plant in the Iju-Ishaga area of Lagos, the product’s retail price was reduced to ₦1,100 per kg from the ₦1,500 it sold for in March.
Speaking anonymously to the aforementioned publication, a Gasland plant manager said 12.5kg of gas sold for ₦14.400 two weeks ago but currently sells for ₦13.300.
The manager attributed the price crash to the availability of forex for imports, saying the naira gains have contributed to the price reduction.
He added that prices may crash further if the Central Bank of Nigeria (CBN) continues its forex interventions.
He said, “Everyone knows that the dollar is crashing, and Nigeria imports most of the LPG consumed there. So, we can say the naira gain is helping to push down the cost of the commodity.
“Two or three weeks ago, our facility sold 12.5 kg for as high as ₦15,600 because of the scarcity of forex. Also, we had mostly old stocks purchased using the exchange rate of N1,500 per dollar.
“But now that the FX is hovering between N1,200 and N1,100 per dollar, it will be absurd to continue to sell at the old price it sold when forex was scarce and high.”