The rising cost of cooking gas is expected to be a major expense item for Nigerians as they look forward to Xmas festivities at the end of the year.
Data from the National Bureau of Statistics (NBS) has shown that some Nigerians paid as much as N10,000 for a single refill as of September 2022 for a 12.5kg LPG cooking gas
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 |
Factors influencing the price of cooking gas
There are many factors (both local and global) influencing the increase in cooking gas prices. Some of them are highlighted below:
- First of all, Russia’s war on Ukraine has affected logistics and supply chains, especially for suppliers who still have to import LPG into the country as Nigeria cannot produce enough to meet domestic demand.
- These LPG 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 incidents have resulted in thousands of people being relocated to internally displaced person camps and businesses shutting down.
Nigeria Liquefied Natural Gas (NLNG) Limited recently declared a force majeure, following the flooding of the facilities of some of its upstream suppliers. The company said it is still operational but at limited capacity.
- An energy analyst with NNPCL who spoke to Nairametrics on condition of annonymity pointed out that if Nigerians paid as much as N10,000 for a 12.5kg refill in September 2022, then that means there must be a supply problem.
- 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.
Optics – Foreign investors are not interested in Nigeria’s domestic gas sector because current producers are not getting their money back from investments.
