Amidst Nigeria’s fuel price challenges, the cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has surged to N1,500 per kilogram, leaving many households grappling with higher living costs.
The Managing Director and CEO of NIPCO Plc, Suresh Kumar, pointed to over 60% of Nigeria’s LPG consumption being imported as a major reason for the price increase.
He expressed optimism, however, that local production, particularly with the Dangote Refinery and other domestic facilities, would eventually bring prices down.
In Ogun and Lagos states, retail prices hit a peak of N1,500/kg, with Abuja seeing a staggering 41.6% price increase, where a 12.5kg cylinder now costs around N17,000. Comparatively, this was sold for N12,000 in July and N11,735 at the start of the year, reflecting a sharp and concerning trend.
Earlier promises by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, to reduce cooking gas prices remain unmet as prices have continued to climb.
A new market survey confirmed that, in several areas of Abuja, a kilogram of gas now sells between N1,300 to N1,400 depending on location, while some outskirts report slightly lower prices.
Ogun State’s Commissioner for Environment, Ola Oresanya, has previously warned that continued increases in LPG prices could force many households to revert to using charcoal for cooking.
At a recent National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers, Kumar stressed the need to encourage domestic production and urged the government to support companies like Chevron in converting propane output into butane, which is more suitable for household use.
“Currently, less than 40% of the 1.5 million metric tonnes consumed locally is produced in Nigeria,” Kumar stated, emphasizing the urgent need for more local output.
He added, “With the Dangote refinery and others sourcing crude oil in local currency, we expect an increase in LPG production, which will help reduce prices.”
Kumar further noted that Nigeria’s gas reserves of over 200 trillion cubic feet hold enormous potential to boost domestic gas consumption and transform the LPG and CNG sectors.
He highlighted NIPCO’s growing investment in infrastructure, pointing to their Apapa LPG facility, which has expanded from 5,000 to 20,000 metric tonnes since 2008.
The company also aims to increase access to cooking gas across Nigeria, with plans to continue expanding both LPG and CNG services nationwide.
Despite the growing market, Kumar pointed out that less than 60% of Nigeria’s 200 million population currently use LPG.
He urged greater collaboration among stakeholders to end gas flaring and unlock the country’s full gas potential, with a vision to raise LPG consumption from 1.5 million metric tonnes to 5 million annually.
While demand for LPG remains stagnant due to high prices, Kumar believes the situation is temporary.
“As more players enter the market, we anticipate prices to stabilize, and with government support, we can make LPG more affordable and accessible to Nigerians,” he noted.
