Over time, the average retail price of cooking gas has been fluctuating according to data from the National Bureau of Statistics, NBS.
The NBS's latest report on LPG prices showed that the average retail price for refilling a 12.5 KG cylinder of cooking gas dropped from ₦10,277.17 in January 2023 to ₦10,253.39 in February 2023 revealing a drop of 0.23 per cent during the period.
The average price for refilling the 5KG cylinder, however, increased from ₦4,588.75 recorded in January 2023 to ₦4,600.57 in February 2023 thus indicating a 0.26 per cent increase during the period.
According to the Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, the hike in the price of cooking gas is due to the consistent changes in the exchange rate, multiple taxes, and the lack of foreign exchange for industry stakeholders who wish to import the product.
According to Essien, marketers in the sector were facing difficulties associated with the importation of the product.
If importation was possible, it would have aided the FG to boost domestic supply thus directly affecting the price of the product as it would normally drop due to the availability of the product.
He also noted that the price of LPG has remained stable since the beginning of the year even though it was still on the high side, compared to the price last year.
“The source of LPG, for some time now, has been predominantly from the Nigeria LNG and has never met the demands,” he said.
“This is because of the supply-demand gap and market dynamics. All these work in concert to affect the price. Hence, the price goes up.
“The inability to import LPG as frequently as before and to augment the inadequate domestic supply is due to major factors like FX, exchange rate, and taxes.”
Essien however, called on the FG to support more investments in the gas processing sector in the country by granting the necessary incentives that will attract investors.