Cooking gas price rises by 114% in 16 months

This marks an approximate 114 percent increase over the 16-month period.

Sources indicate that the surge in LPG prices is linked to the rising exchange rate, as the product is priced in dollars.

The devaluation and floating of the naira under the Tinubu administration have caused the currency to plummet, now trading at around N1,700 to the dollar compared to less than N700 in May 2023.

The Managing Director/Chief Executive Officer of NIPCO Plc, Suresh Kumar, stated that over 60 percent of the cooking gas consumed in Nigeria is imported.

Speaking at the recently concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024 in Lagos, Kumar noted that local production of LPG is insufficient and called on the Federal Government to prompt Chevron to convert more of its propane output into butane for domestic use.

“Presently, less than40 percent of the1.5 million metric tonnes consumed domestically is produced locally. This is why the government should encourage companies like Chevron to increase their conversion of propane output into butane, which is more suitable for household use,” he explained.

Concerns are rising that the price of cooking gas may continue to climb due to the fluctuating exchange rate and the nation’s dependence on imports.

A report from the National Bureau of Statistics revealed that the average retail price for refilling a 5kg cylinder of LPG increased by 4.19 percent month-on-month, rising from N6,430.02 in August 2024 to N6,699.63 in September 2024.

On a year-on-year basis, this represents a 59.90 percent increase from N4,189.96 in September 2023.

Regarding state-by-state analysis, Rivers had the highest average price for refilling a 5kg cylinder at N7,285.71, followed by Gombe at N7,271.88, and Borno at N7,089.72.

In contrast, Kebbi reported the lowest price at N5,950, with Kano and Benue following at N6,133 and N6,143, respectively.

Regionally, the North-East recorded the highest average retail price for refilling a 5kg cylinder at N6,929.02, while the South-East had an average of N6,893.47, and the North-West had the lowest at N6,382.30.

The report further indicated that the average retail price for refilling a 12.5kg cylinder of cooking gas rose by 4.89 percent month-on-month, increasing from N15,552 in August 2024 to N16,313 in September 2024.

Year-on-year, this price grew by 76.41 percent from N9,247.40 in September 2023.

On state profile analysis, Rivers again reported the highest average price for refilling a 12.5kg cylinder at N17,993, followed by Gombe at N17,943, and Zamfara at N17,475. Conversely, the lowest price was observed in Adamawa at N13,983, followed by Nasarawa and Bauchi at N14,938 and N15,000 respectively.

According to the NBS report, Zone-wise analysis showed that the South-East had the highest average retail price for refilling a 12.5kg cylinder at N16,957, followed by the South-West at N16,665, while the North-East recorded the lowest at N15,770.75.

Reports also highlighted that the price of LPG has risen significantly from around N300/kg in 2017 to about N1,500 in October 2024.

This, along with the economic challenges stemming from the removal of fuel subsidies and the floating of the naira, has led many Nigerians to revert to traditional cooking methods using firewood.

There are worries that the escalating cost of cooking gas could impede the country’s efforts to promote clean cooking and reduce deforestation.

The Executive Director and Chief Financial Officer of Heirs Energies, Samuel Nwanze, emphasized that Nigeria requires $7.5 billion to achieve clean cooking by 2030.

Ogun State’s Commissioner for Environment, Ola Oresanya, warned that many might turn to charcoal for cooking if LPG prices keep rising.

The International Energy Agency reported that around 500,000 African women die prematurely each year due to cooking with firewood, charcoal, or traditional stoves, as they lack access to clean cooking facilities.

The IEA noted, “Women and children are disproportionately affected by the lack of energy access, particularly regarding clean cooking. It is estimated that500,000 women die prematurely every year in Africa due to this lack of access.

“Additionally, women may spend up to four hours daily collecting firewood, which hinders their education and professional opportunities.”