Cooking gas dealers have increased the price of the commodity again after crashing in June
The dealers say that 12.5kg of cooking gas now sells for N14,500 from N13, 200 and 6kg sells for N7,200
The dealers blamed the crash of the Nigerian currency, the naira, for the hike in prices
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.
The price of liquified petroleum gas (LPG), also known as cooking gas, has increased again after crashing in June.
Findings show that it now costs about N14,500 to refill a 12.5kg cylinder, N7,200 for 6kg, and N1,200 for 1kg.
Cooking gas prices rises again, LPG, NLNG
Sellers announce new prices for cooking gas naira falls against the dollar Credit: PixelCatchers Source: Getty Images
New prices for cooking gas emerge
The commodity’s price crashed in June when a 12.5kg refill was sold for N13,200, N6,600 for 6kg, and N1,100 for 1kg.
In May, the commodity’s price remained stable following foreign exchange stability.
Cooking gas dealers blamed the volatile foreign exchange for the price rise, saying that most dealers had to rely on imported products rather than the Nigerian NLG Limited supply.
Dealers, who spoke to Legit.ng anonymously, said that the price increase is due to the high FX rate and volatility.
“There is always a pattern with our sales. Each time the FX market is stable in the Forex market, the prices remain stable and affordable. The market reacts to fluctuations in the Forex market,” one of the dealers stated.
Foreign exchange affects LPG prices
Reports say the dealers revealed plans to maintain a stable rate for the product, but high forex has remained an obstacle.
According to the dealers, each time there is an increase, their sales plummet as users switch to alternative energy sources such as electric stoves and charcoal.
Marketers warn of continued price increases
Legit.ng reported that the President of the Nigerian Association of Liquified Petroleum Gas Martkers (NALPM), Oladapo Olatubosun, warned that cooking gas prices would continue to skyrocket as exchange rate volatility continues to impact the domestic market.
Olatunbosun said:
“It Is expected that when the foreign exchange increases, the price of LPG will follow suit because it is still priced and determined by the flow of forex.”
Analysts believe that the Nigerian government’s policies, such as removing import duties and VAT from imported LPG and free distribution of one million gas cylinders, have not positively affected prices.
Also, the price is susceptible to inflationary trends, which the National Bureau of Statistics says soared to 34.19% in June.
Data shows states with highest cooking gas prices
Legit.ng previously reported that the National Bureau of Statistics has revealed that the average price for refiling a 5kg Liquefied Petroleum Gas (Cooking Gas) cylinder in Nigeria stood at N6,591.62 in March 2024.
This represents a 7.10% increase compared to the N4,562.51 average price recorded in February 2024, which was N6,154.50.
On a year-on-year basis, cooking gas prices increased by 42.97% from N4,610.48, which was paid in March 2023.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
Source: Legit.ng