Economy

Cooking gas price in Nigeria surges by 70% year-on-year

Nigerians looking to refill their cooking gas cylinders this summer are facing a price hike, according to the latest data from the National Bureau of Statistics (NBS). Cooking gas price in Nigeria (Liquefied Petroleum Gas (LPG), increased in May 2024 compared to both the previous month and May 2023.

The increase in cooking gas price in Nigeria is particularly noticeable for the smaller, 5kg cylinders commonly used in homes. The average refill price for these cylinders jumped 13.75 per cent month-on-month, reaching N7,418.45 in May from N6,521.58 in April.

Year-on-year, the increase is even steeper, with a rise of 70.12 per cent compared to N4,360.69 in May 2023.

Also read: Government Policies Make Price of Cooking Gas Go Beyond Reach of Ordinary Nigerians

While the price for refilling larger, 12.5kg cylinders saw a slight decline of 0.07 per cent in May compared to April, there’s still a significant year-on-year increase. The average refill cost for these larger cylinders was N15,627.40 in May, up 63.85 per cent from N9,537.89 in May 2023.

The cost of LPG also varies depending on location. The NBS report reveals that the South-East region has the highest average price for refilling a 5kg cylinder at N7,680.87, followed by the South-West at N6,593.93.

Conversely, the North-East has the lowest average price at N7,071.84.

Individual state breakdowns show similar variations, with Benue having the most expensive refills for 5kg cylinders at N8,012.03 and Yobe offering the lowest at N5,842.31.

For larger cylinders, the South-South region has the highest average refill cost at N16,310.02, followed by the North-West at N15,991.13.

The North-East again has the lowest average price at N15,010.62.

Refilling costs within these regions also vary, with Zamfara having the most expensive refills for 12.5kg cylinders at N18,369.33 and Bauchi offering the lowest at N13,076.43.

Key Findings

  1. Price Increase for 5kg LPG Cylinders:
    • The average retail price for refilling a 5kg cylinder of LPG rose by 13.75 per cent from N6,521.58 in April 2024 to N7,418.45 in May 2024.
    • Year-on-year, the price surged by 70.12 per cent, compared to N4,360.69 in May 2023.
    • Benue State recorded the highest price at N8,012.03, followed by Enugu at N7,926.21, and Ondo at N7,857.53.
    • The lowest prices were found in Yobe (N5,842.31), Jigawa (N6,521.81), and Katsina (N6,567.95).
  2. Regional Disparities:
    • The South-East region had the highest average price for refilling a 5kg cylinder at N7,680.87, followed by the South-West at N6,593.93.
    • The North-East region recorded the lowest average price at N7,071.84.
  3. Price Dynamics for 12.5kg LPG Cylinders:
    • The average retail price for refilling a 12.5kg cylinder slightly decreased by 0.07 per cent from N15,637.74 in April 2024 to N15,627.40 in May 2024.
    • However, there was a significant year-on-year increase of 63.85 per cent from N9,537.89 in May 2023.
    • Zamfara recorded the highest price at N18,369.33, while several other states showed varied price levels reflecting regional economic conditions​.

The drastic increase in LPG prices can be attributed to several factors:

  1. Supply Chain Issues:
    • Disruptions in the supply chain, both locally and globally, have impacted the availability and cost of LPG. Factors such as import tariffs, transportation costs, and logistical challenges contribute to these price hikes.
  2. Inflation and Currency Fluctuations:
    • Nigeria’s economic environment, marked by high inflation rates and fluctuating currency values, plays a significant role. The depreciation of the Naira increases the cost of imported LPG, further driving up retail prices.
  3. Government Policies:
    • Changes in government policies regarding subsidies and import duties on LPG can also influence prices. Any reduction in subsidies or increase in import duties can lead to higher retail prices for consumers.
  4. Market Demand:
    • Rising demand for LPG, driven by population growth and increased adoption of cooking gas as a cleaner alternative to traditional cooking methods, puts additional pressure on supply, leading to higher prices.

Regional Impact

The report underscores the disparity in LPG prices across different regions. States in the South-East and South-West generally face higher prices compared to those in the North-East. This could be due to differences in distribution infrastructure, economic activity levels, and local market conditions. For instance, states with better infrastructure and higher economic activity may experience higher demand, thereby driving up prices.

Samuel Bolaji

Samuel Bolaji holds a Master of Letters in Publishing Studies from the University of Stirling, Scotland, United Kingdom, and a Bachelor of Arts in English from the University of Lagos, Nigeria. He is an experienced researcher, multimedia journalist, writer, and Editor. He is currently the Editor of Arbiterz.

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