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NBS data indicates that Nigerians could refill 12.5kg cooking gas at N12,000 before year end

Data from the National Bureau of Statistics (NBS) has shown that some Nigerians who purchase 12.5kg LPG cooking gas paid as much as N10,000 for a single refill as of September 2022. In September 2021, Nigerians paid an average of N6,164.97 for the same service. 

Nigeria is currently in the last quarter of the year when commodity prices tend to increase due to the festive period. In light of this, there will likely be a steady increase in cooking gas prices across various states, resulting in Nigerians paying up to N12,000 to refill a 12.5kg cylinder of cooking gas. 

In its liquefied petroleum gas (LPG) price watch report for September 2022, the National Bureau of Statistics (NBS) stated that the average retail price for refilling a 5kg cylinder of LPG increased by 0.40% to N4,474.48 in September from N4,456.56 in August. On a year-on-year basis, the price rose by 86.62% from N2,397.60 in September 2021. 

Meanwhile, the average retail price for refilling a 12.5kg cylinder of LPG, increased by 0.07% to N9,906.44 in September 2022 from N9,899.34 in August 2022. On a year-on-year basis, the price rose by 60.69% from N6,164.97 in September 2021. 

The data breakdown below revealed that some Nigerians are still paying up to N4,950 to refill 5kg cylinders and N10,000 to refill 12.5kg cylinders. 

Data Breakdown 

In the report, there were varying prices recorded for cooking gas refills at 5kg and 12.5kg. In the various classifications, you will find the states with the lowest prices and those with the highest prices for both 5kg cylinders and 12.5kg cylinders, based on logistics and available supply. You will also find the average prices for both cylinders across all the zones in Nigeria.

Lowest prices (5kg) 

 

States  Prices 
Abia state  N4,044.44 
Anambra state  N4,100.00 
Kano state  N4,109.67 

Highest prices (5kg) 

States  Prices 
Kwara state  N4,950.00 
Niger state  N4,941.67 
Adamawa state  N4,928.29 

 Lowest prices (12.5kg) 

 

States  Prices 
Yobe  N8,350.00 
Katsina state  N8,545.56 
Taraba state  N9,025.78 

 Highest prices (12.5kg) 

States  Prices 
Cross River  N10,937.50 
Kogi  N10,760.00 
Oyo  N10,723.75 

 Average cooking gas prices across all zones (5kg) 

Zones  Price 
Northwest  N4,417.76 
Northeast  N4,539.41 
Northcentral  N4,715.74 
Southwest  N4,460.00 
Southeast  N4,343.45 
South-south   N4,317.92 

 Average cooking gas prices across all zones (12.5kg)

Zones  Prices 
Northwest  N9,507.94 
Northeast  N9,300.41 
Northcentral  N10,073.64 
Southwest  N10,320.44 
Southeast  N10,105.87 
South-south   N10,202.15 

 Why are LPG prices increasing? 

There are a number of factors that are both local and global in nature.  

  • First off, the Russia-Ukraine war influences logistics and supply especially for suppliers who still have to import LPG for consumption, as Nigeria does not have the capacity to produce LPG to meet domestic demand.  
  • These imports are paid for in USD, and consumers will have to pay for the expenses that these suppliers bear when importing LPG. 
  • Since September 2022, Nigerian states have recorded extreme flooding in several states (now 33). The flooding is affecting logistics and delivery of supplies across states, LPG included. 
  • So, the prices will increase for the little supply available, especially in the south-south region, where flooding cases have resulted in thousands of people being relocated to internally displaced person camps and businesses being shut down. Naijaonpoint had earlier reported that road access between Bayelsa, Delta, and Rivers states has been cut off due to extreme flooding.  
  • Nigeria Liquefied Natural Gas (NLNG) Limited has recently declared a force majeure, following the flooding of the facilities of some of its upstream suppliers. Although it says it is still operational but at limited capacity. The fact that the company made a pledge to supply 400,000 metric tons of LPG to the domestic market, its current limited capacity could affect supply. However, on October 21, NLNG announced through its official Twitter account that it will continue to supply LPG to the domestic market for now from the limited production. 
  • But, if Nigerians are paying as much as N10,000 for a 12.5kg refill as of September 2022, there must be a supply problem, says an energy analyst with NNPCL, who pled anonymity. According to the analyst, the “Decade of Gas” initiative established by the Buhari administration is meant to drive gas as a cooking alternative for all Nigerians and if affordability is an issue, it means the time has come to invest in gas processing infrastructure, so, Nigerians can begin to pay for LPG without worrying about imports. He believes that local processing capacity will make a difference in LPG pricing.  

What you should know 

  • The average retail price for refilling a 12.5kg cylinder of cooking gas increased by 0.77% on a month-on-month basis from N9,824.07 in July 2022 to N9,899.34 in August 2022 on average. 
  • Foreign operators are not interested in Nigeria’s domestic gas, because current producers are not getting their money back from investments. 

... NBS data indicates that Nigerians could refill 12.5kg cooking gas at N12,000 before year end Read More on ... Naijaonpoint.

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