The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has surged to N1,500 per kilogram, hitting consumers across Nigeria. Retail outlets in Ogun and Lagos States saw the sharp price rise on Sunday, October 14, while in Abuja, refilling a standard 12.5kg cylinder now costs up to N17,000—marking a 41.6% increase.
Suresh Kumar, Managing Director and CEO of NIPCO Plc, attributed the price hike to Nigeria's reliance on imported LPG. Over 60% of the cooking gas consumed in the country is imported, making it vulnerable to global market fluctuations. However, Kumar expressed optimism that the emergence of domestic refineries, including the Dangote refinery, will help reduce these prices.
Speaking at the 2024 National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers in Lagos, Kumar stressed the need for the Federal Government to encourage oil companies, such as Chevron, to convert more propane into butane for domestic use, as current local production only accounts for less than 40% of Nigeria’s 1.5 million metric tonnes annual consumption.
“With the Dangote refinery and others sourcing crude oil in local currency, local LPG production is expected to increase, easing reliance on imports and driving prices down,” Kumar explained.
He also noted that increased domestic production would help stabilize cooking gas prices, reducing exposure to foreign exchange fluctuations and international pricing pressures, which have contributed to the recent price spike. Consumers across Nigeria, who depend on LPG for cooking, are feeling the impact of this sharp rise as the need for more local production grows.
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