Cooking gas price hikes by 17% as operators anticipate further rise

The price of Liquefied Petroleum Gas, or cooking gas, has risen by 17% in October 2023, with the 12.5kg now selling for N10,250, up from N8...

The price of Liquefied Petroleum Gas, or cooking gas, has risen by 17% in October 2023, with the 12.5kg now selling for N10,250, up from N8,500 in August 2023.

This is despite the fact that the price of 1 kg increased by 11% to N900 from N800, while the price of 3kg increased by 18% to N2,500 from N2,050

Meanwhile, operators anticipate a 43 percent increase to N1,500 per kg if necessary measures to achieve supply stability in the domestic market are not implemented.

Mr. Oladapo Olatunbosun, President of the National Association of Liquefied Petroleum Gas Marketers (NALPGAM),The large gap in policy clarity, among other concerns, is causing operational challenges.

He stated: “We are appealing to the Federal Government to provide incentives to the LPG investors to make the price affordable. Similarly, our union believes that the incessant rise in LPG price would be contained if more storage facilities are built by the major marketers and off-takers.

As of today, 20 million metric tons is N14 million, and there is an attempt by the gas tank farm owners and offtakers to increase the price far above what the marketers can afford.

“Some importers were selling 20 metric tons of cooking gas at N14 million after receiving the product from local producers at less than N8 million. We equally think that both states and federal governments should equally intervene in the way of building depots and maintaining the existing ones built by federal government.”

He also appealed to the Nigerian Liquefied Natural Gas (NLNG) to increase its production capacity to meet the rising demand of LPG, adding that we believe that if NLNG transacts with their local LPG marketers in local currency that it would go a long way in reducing and of course stabilize the price.

“Already, the poor are going back to the traditional cooking energies which are detrimental to their health and the ecosystem.”