The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has risen to N1,500 per kilogram.
Suresh Kumar, Managing Director and CEO of NIPCO Plc, noted that over 60% of cooking gas consumed in Nigeria is imported. He believes that the upcoming Dangote refinery, along with other domestic refineries, will help lower cooking gas prices.
As of Sunday, October 14, retail prices for cooking gas reached N1,500/kg in Ogun and Lagos States. In Abuja, the average cost to refill a 12.5kg cylinder has surged by 41.6%, now standing at N17,000 across various locations. This significant price hike poses challenges for consumers who depend on LPG for everyday cooking.
During the recent National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024 in Lagos, Kumar emphasized that local LPG production is currently insufficient. He urged the Federal Government to motivate Chevron to convert more of its propane output into butane, which is better suited for domestic use.
“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 stated.
Kumar expressed optimism that with the Dangote refinery and other local refineries now sourcing crude oil using the local currency, domestic LPG production will increase, ultimately driving down prices.
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.”
