Cooking gas price increases to N1500 per kg

The country’s Liquefied Petroleum Gas, popularly known as cooking gas, has seen a price jump.

According to reports, cooking gas is retailing for N1,500 per kilogram in several retail locations throughout the nation.

According to Suresh Kumar, Managing Director/Chief Executive Officer of NIPCO Plc, more than 60% of cooking gas used in Nigeria is imported, therefore the establishment of the Dangote refinery and other local refineries will reduce the cost of cooking gas.

On October 14, cooking gas prices peaked at N1,500/kg at retail outlets in Ogun and Lagos states. at Abuja, the average price for refilling a 12.5kg cylinder of cooking gas climbed by 41.6% to N17,000 in various localities.

This rapid price increase affects customers, many of whom depend on LPG for their everyday cooking needs.

Speaking at the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024 in Lagos, Kumar revealed that local LPG production remains inadequate, urging 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.”