The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has continued to surge across Nigeria despite the federal government’s recent export ban aimed at stabilising domestic supply.
Consumers nationwide are reeling from the surge, with prices increasing by over 45.8 percent in some areas.
For Maria Okafor, a single mother of three, the escalating cost has turned a basic necessity into a luxury.
“Last month, I bought a 12.5kg cylinder for N12, 000. Today, they’re asking for N17,500. How are we supposed to survive?” she said, standing outside her roadside kiosk.
Read also:Explainer: Here is why cooking gas prices are going up
Grace Adebowale, like many Nigerians, relies on LPG for cooking, but the sudden price hike has forced her to reconsider her options.
“I never thought I would be paying this much for gas to cook my meals,” Adebowale said. “Every month, the price goes up, and we’re being forced to use less and less. It’s tough.”
She added, “We’ve started using charcoal again, but it’s slower, dirtier, and more stressful. My children complain about the smoke, and it feels like we’re going backwards.”
It’s not just families that are feeling the pinch. Small businesses that depend on cooking gas are facing an existential crisis.
Adewale Ogunleye, who runs a roadside Amala joint in Abuja, has seen his profit margins shrink dramatically.
“Cooking gas is my biggest expense. If the prices keep going up, I’ll have to increase the prices of food, and customers won’t come,” he said.
For Ogunleye, the decision to switch to firewood is bittersweet. “It’s cheaper, but it takes more time and affects the taste of the food. Plus, it’s bad for the environment.”
Data sourced National Bureau of Statistics (NBS) show the average retail price for refilling a 12.5kg cylinder of LPG increased by 58.68 percent from N10, 545.87 in October 2023 to N16, 734.55 in October 2024, putting additional strain on households already grappling with high inflation and economic challenges.
The average cost of refilling a 5kg cylinder of cooking gas rose by 3.23 percent in October to N6,915.69, up from N6,699.63 in September. On a year-on-year basis, the increase is even more, 51.58 percent higher than the N4,562.51 recorded in October 2023.
The average price rose by 2.58 percent to N16, 734.55 in October, compared to N16,313.43 in September.
Households in Borno bear the brunt, paying the highest price for a 5kg cylinder at N7,939. In addition, Rivers State tops the charts for 12.5kg cylinders, with residents shelling out N17,895 on average.
In contrast, residents of Katsina pay the lowest prices, N6,270 for a 5kg refill and N14,725 for a 12.5kg refill.
These regional differences highlight the uneven economic pressures faced by Nigerians, depending on where they live.
The NBS report reveal that the North-East region recorded the highest average price for refilling a 5kg cylinder at N7,319.03, while the South-South led for 12.5kg cylinders at N17,114.67.
Read also: Price of 12kg gas jumps 58.68 percent in October 2024
The North-West and North-Central zones recorded the lowest average prices for 5kg at N6,703.95 and 12.5kg at N16,411.19 respectively.
Export Ban
The government’s export ban, announced last month, was intended to prioritise local consumption of LPG and reduce dependency on imports. Nigeria, despite being a significant gas-producing nation, has historically imported a substantial portion of its domestic LPG needs due to limited local processing and storage capacity.
Experts point to multiple causes for the increase
“While the freeze on exports was intended to ensure that domestic demand is met, the reality is that we are facing increasing production costs,” explained Nathaniel Adebayo, an economist and energy analyst at Sofidam Capital.
“Gas prices are closely tied to international market trends. The rising cost of crude oil, geopolitical tensions in key oil-producing regions, and transportation bottlenecks are all playing a part in pushing up prices.”
Furthermore, despite the export freeze, domestic distribution networks are still struggling with inefficiencies, leading to higher costs for local suppliers.
“Even if gas isn’t leaving the country, the infrastructure to get it to consumers at an affordable price is broken,” said Adebayo.
Last month, the Nigerian government said it was exploring partnerships with international oil giants, Chevron and ExxonMobil, in a bid to alleviate the persistent cooking gas shortages and soaring prices.
Farouk Ahmed, chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said this strategic move aims to bolster the domestic gas supply and provide much-needed relief to Nigerian households.
Read also: FG, states, LGAs share N1.411trn revenue in October
“We have been engaging stakeholders on the domestication of Liquefied Petroleum Gas (LPG) produced in-country by producers, especially Chevron Nigeria Limited (CNL) and Mobil Producing Nigeria (MPN), similar to Nigerian Liquified Natural Gas (NLNG), which has domesticated 100 percent of its Butane production since the year 2022,” Ahmed said at 2024 OTL Africa Downstream Energy Week in Lagos recently.
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