The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in Nigeria has experienced significant volatility over the past year, reflecting broader economic trends and supply chain challenges.......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Price Trends Over the Last Year
In June 2023, the average price of cooking gas was around ₦700 per kilogram. By October 2024, prices had surged to approximately ₦1,500 per kilogram, representing a 114% increase in just 16 months.
However, recent market reports indicate a slight decline in prices. As of February 7, 2025, depot prices for a 20 metric ton (MT) load were as follows:
NIPCO – ₦19,400,000
NAVGAS – ₦19,500,000
MATRIX – ₦22,500,000
These depot rates translate to an average retail price of ₦1,200 to ₦1,300 per kilogram, depending on the supplier and distribution factors.
Retail Price Breakdown by Cylinder Size
Due to variations in transportation costs, retailer margins, and location, the price per kilogram fluctuates. Below is an estimate of the current retail price for different LPG cylinder sizes:
3kg Cylinder – ₦3,900
5kg Cylinder – ₦6,500
6kg Cylinder – ₦7,800
10kg Cylinder – ₦13,000
12.5kg Cylinder – ₦16,250
Factors Affecting Cooking Gas Prices in Nigeria
Global Energy Prices: Since over 60% of Nigeria’s LPG supply is imported, fluctuations in global gas prices impact domestic costs.
Exchange Rate Volatility: The naira’s depreciation against the U.S. dollar increases import costs, directly influencing LPG prices.
Local Supply and Distribution Challenges: Limited local production and logistical constraints contribute to price instability.
Government Policies and Taxes: Import tariffs, levies, and regulatory policies also affect pricing trends.
Seasonal Demand Fluctuations: Increased usage during colder months or festive seasons can lead to temporary price spikes.
Outlook for 2025
While the recent price drop offers some relief, the long-term outlook for cooking gas prices remains uncertain. Experts suggest that stabilizing the naira, boosting local LPG production, and improving energy policies could help mitigate further price increases.
Consumers are advised to monitor market trends and plan purchases strategically to manage costs effectively.
