The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in Nigeria has remained a focal point for households as it continues to fluctuate due to multiple influencing factors.
As of this week, there have been slight variations in prices across different regions, driven by factors such as transportation costs, foreign exchange rates, and local demand-supply dynamics.
Key Factors Influencing Prices
International Market Prices: The price of cooking gas in Nigeria is heavily influenced by global LPG prices. Nigeria imports a significant portion of its LPG, which makes the domestic price sensitive to international market dynamics.
Exchange Rate Volatility: The fluctuation in the naira against the dollar has played a significant role in determining the cost of imported LPG. As the naira weakens, import costs rise, directly impacting the retail price of cooking gas.
Transportation Costs: The high cost of transportation, primarily due to elevated fuel prices, has increased the overall cost of distributing LPG from depots to end-users, especially in regions far from the coastal depots.
Demand-Supply Dynamics: Post-festive season demand has seen a slight drop, causing minor price reductions in some locations. However, areas with supply bottlenecks or higher demand still report higher prices.
Domestic Supply Challenges: Despite Nigeria being a gas-rich nation, inadequate local refining and processing facilities result in reliance on imports, leaving the market exposed to international price swings.
See the price of cooking gas per kg below:
1kg Cooking gas – ₦1,300
3kg Cooking gas – ₦3,900
5kg Cooking gas – ₦6,500
6kg Cooking gas – ₦7,800
10kg Cooking gas – ₦13,000
12.5kg Cooking gas – ₦16,250
