Amid the ongoing struggles of Nigerians grappling with high petrol costs, the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has surged to N1,500 per kilogram. This trend reflects broader concerns over the cost of living, as many households rely on LPG for their daily cooking needs.
Recent checks confirmed that the cost of LPG has reached N1,500 per kilogram in retail outlets across Ogun and Lagos States, with prices peaking as of Sunday. In the Federal Capital Territory (FCT), Abuja, the average cost of refilling a 12.5kg cylinder has climbed by 41.6%, now standing at N17,000, compared to N12,000 three months ago.
This sharp increase mirrors the trend observed nationwide. In July, a 12.5kg cylinder sold for N12,000, while in January 2024, it was N11,735. The current price rise signals a continuing upward trajectory, presenting significant challenges for consumers who have seen LPG prices nearly double within the year.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, had assured Nigerians in August that efforts were underway to mitigate the rising cost of LPG. He promised to engage regulators and gas producers to explore solutions for reducing prices. However, recent market surveys indicate that these efforts have yet to yield tangible results, as prices continue to escalate.
An analysis from the Lokogoma area of the FCT confirmed that a kilogram of gas now costs N1,400, a significant jump from N1,200 recorded earlier. In other areas, including Kubwa, prices range between N16,200 and N16,500, while outlying regions like Bwari, Kurudu, and Jikwoyi report rates around N1,300 per kilogram.
At the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers in Lagos, the Managing Director/Chief Executive Officer of NIPCO Plc, Suresh Kumar, addressed the ongoing issue. Kumar expressed concerns over Nigeria’s reliance on imported LPG, noting that over 60% of the cooking gas consumed domestically is imported. He emphasized that increasing local production could alleviate the situation.
“Currently, less than 40% of the 1.5 million metric tonnes of LPG consumed domestically is produced locally. This is why the government must encourage companies like Chevron to convert more of their propane output into butane, which is more suitable for domestic use,” Kumar stated.
Kumar remains optimistic that the commissioning of the Dangote refinery, along with other local refineries, will help stabilize prices by increasing local supply. “With the Dangote refinery and other refineries sourcing crude oil locally, we expect a rise in LPG production, which should bring down the price,” he noted.
Kumar highlighted NIPCO’s commitment to enhancing LPG distribution across Nigeria, revealing that the company has invested significantly in infrastructure to support this goal. “In 2008, we built an LPG facility in Apapa with a capacity of 5,000 metric tonnes. Today, that facility has grown to over 20,000 metric tonnes, thanks to strategic partnerships,” he said.
He also stressed the need for further investments in pipelines, storage, and retail outlets to improve accessibility nationwide. “Our existing downstream infrastructure can handle up to 5 million MT annually, demonstrating our readiness to accommodate increased production from associated and non-associated gas fields,” Kumar added.
Kumar urged the Federal Government to introduce incentives that would encourage investments in gas processing, stressing that boosting local production is key to reducing reliance on imports. “We must work with the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other stakeholders to end gas flaring. Substantial investments are needed to capture and process flared gas to increase domestic supply beyond the current 1.5 million MT to at least 5 million MT annually,” he emphasized.
Despite significant growth, with Nigeria’s domestic LPG consumption rising from 50,000 MT annually to approximately 1.5 million MT over the past 17 years, Kumar pointed out that less than 60% of the country’s 200 million population uses LPG. “Our vision is to increase LPG consumption to levels appropriate for a country of over 200 million people,” he said.
The NIPCO CEO concluded by calling on the government to support local refineries, including the Dangote Refinery, to enhance domestic gas production. “Backing these refineries in their efforts to significantly increase LPG output is crucial. This will drive down retail prices and make the product more accessible to Nigerians,” Kumar asserted.
The rising cost of LPG continues to be a concern for many Nigerians, but industry leaders like Kumar remain hopeful that increased local production and strategic policy support will soon bring much-needed relief.
