Liquefied Petroleum Gas (cooking gas) prices showed decreases for 5kg and 12.5kg refill between September 2022 and September 2023.
This was stated in the September 2023 Liquefied Petroleum Gas (LPG) Price Watch report.
According to the report, the average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) increased by 1.81% monthly, rising from N4,115.32 in August 2023 to N4,189.96 in September 2023.
However, when we look at the year-on-year comparison, there was a decrease of 6.36% from N4,474.48 in September 2022.
5kg refill
Taking a closer look at specific states, Kwara had the highest average price for refilling a 5kg cylinder of Cooking Gas, at N4,866.60. Benue followed with N4,789.26 and Adamawa with N4,785.71. On the flip side, Ondo had the lowest price at N3,364.62, with Ekiti and Edo at N3,450.06 and N3,626.17, respectively.
When we analyze prices by region, the North-Central had the highest average retail price for refilling a 5kg cylinder of Cooking Gas, averaging N4,555.95. The North-West was next with N4,394.40, while the South-West recorded the lowest price at N3,809.22.
12.5kg refill
For the larger 12.5kg cylinder of Cooking Gas, the average retail price increased by 0.58% on a monthly basis, going from N9,194.41 in August 2023 to N9,247.40 in September 2023.
However, on a year-on-year basis, this was a decrease of 6.65% from N9,906.44 in September 2022.
Cross River had the highest average retail price for refilling a 12.5kg cylinder of Cooking Gas, standing at N10,203.13. It was followed by Ogun at N9,967.11 and Nasarawa at N9,950.15. In contrast, the lowest average price was in Adamawa at N7,604.29, with Borno and Gombe at N8,113.69 and N8,188.75, respectively.
On a regional basis, the South-South recorded the highest average retail price for refilling a 12.5kg cylinder of Cooking Gas, with an average of N9,613.55.
The South-East was next at N9,393.69, while the North-East had the lowest price at N8,683.62.
Insights on factors influencing LPG prices
Recently, Nairametrics reported that there are critical factors that have a substantial impact on LPG (Liquefied Petroleum Gas) prices within the country:
International Price Index: The global price of LPG, often influenced by factors like international demand and supply, plays a significant role in determining domestic LPG prices. Fluctuations in the international market can directly affect what consumers pay locally.
Naira-Dollar Exchange Rate: The exchange rate between the Nigerian Naira and the U.S. Dollar is a crucial determinant of LPG prices. Since LPG may be subject to international transactions, any shifts in the exchange rate can impact its cost within the country.
Local Production vs. Imports: The balance between locally produced LPG and imported supplies is vital. Local production can help stabilize prices, while heavy reliance on imports can make LPG prices more susceptible to global market changes.
Supply and Demand: Just like any other commodity, the basic economics of supply and demand are at play. When demand for LPG surpasses its supply, prices tend to rise. Conversely, when supply outstrips demand, prices may decrease.
Geopolitical and Natural Events: Geopolitical factors such as conflicts and natural events like hurricanes, which can disrupt the production and transportation of LPG, can result in sudden price fluctuations.
Size and Scale Factor: The scale of LPG production and distribution operations in a region can affect prices. Large-scale operations often benefit from economies of scale, which can help keep prices competitive.
