Cooking Gas Prices in Nigeria: A Pricey Problem
As of December 2024, the average cost of refilling a 12.5kg cooking gas cylinder in Nigeria has skyrocketed to ₦17,000, a 41.6% increase from July’s rate of ₦12,000. This sudden surge in price is causing significant financial strain on households across the country.
A Look at the Past:
Since the beginning of the year, the price of cooking gas has experienced significant fluctuations. In February 2023, the average cost of a 5kg refill was ₦4,600. This price jumped to ₦7,418 in May 2024, representing a 70.12% year-on-year increase. By October 2024, the average price for refilling a 12.5kg cylinder had reached ₦16,734, a 58.68% rise compared to October 2023.
Regional Variations:
Prices vary across different regions in Nigeria, influenced by factors such as transportation costs and local demand. In the North-East, Borno State reported the highest average price for refilling a 5kg cylinder, while the North-West’s Katsina State had the lowest average price.
Factors Driving Price Instability:
Several factors contribute to the price volatility of cooking gas in Nigeria, including:
- Supply constraints: Despite Nigeria’s abundant natural gas reserves, limited domestic processing capacity means it must rely on imports, leading to price fluctuations.
- Global market dynamics: International energy price fluctuations directly impact LPG costs in Nigeria, influenced by global market trends.
- Currency depreciation: The devaluation of the Nigerian naira increases the cost of imported LPG and related equipment, driving up prices.
- Infrastructure challenges: Inadequate storage and distribution infrastructure lead to supply bottlenecks and price variations across regions.
- Government policies: The removal of petrol subsidies and naira devaluation have increased transportation and operational costs, indirectly affecting LPG prices.
In an effort to stabilize the domestic supply, the Nigerian government introduced an export ban on LPG. However, this measure has yet to result in a significant reduction in prices, as market dynamics and existing supply chain issues continue to exert upward pressure on costs.
Cooking Gas Prices per Kilogram:
| Kg | Price (₦) |
|---|---|
| 1 | 1,400 |
| 3 | 4,200 |
| 5 | 7,000 |
| 6 | 8,400 |
| 10 | 14,000 |
| 12.5 | 17,500 |
