Cooking Gas Price Rises to N1500/kg

The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has risen to N1,500 per kilogram.

Suresh Kumar, Managing Director/CEO of NIPCO Plc, noted that over 60 percent of the cooking gas consumed in Nigeria is imported. He stated that the emergence of Dangote refinery and other domestic refineries is expected to lower cooking gas prices.

However, on Sunday, October 14, cooking gas prices reached N1,500/kg in retail outlets in Ogun and Lagos States. In Abuja, the average cost for refilling a 12.5kg cylinder of cooking gas increased by 41.6 percent to N17,000 in various areas.

This significant price hike affects consumers, many of whom depend on LPG for their daily cooking needs.

Speaking at the recent National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024 in Lagos, Kumar highlighted that local LPG production remains insufficient and urged the Federal Government to encourage Chevron to convert more of its propane output into butane.

“Currently, less than 40 per cent of the 1.5 million metric tonnes 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,” he explained.

“With the Dangote refinery and other refineries now sourcing crude oil in local currency, the volume of LPG produced locally is expected to increase, which will, in turn, drive down the price of the commodity,” the MD explained.

He added, “There is hope that the reliance on imported LPG will decrease, which will positively influence the prices at which the product is sold domestically. Greater local production will make LPG more affordable since it reduces exposure to foreign exchange fluctuations and international pricing dynamics.”