Cooking gas (Liquefied Petroleum Gas) has become scarce in Lagos. This is according to Oladapo Olatunbosun, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers.
He confirmed this to Punch over the weekend. According to him, cooking gas has become scarce in Lagos state. This has also been recorded in a number of states outside Lagos.
According to a Punch report, these states include; Kano, Kaduna, Sokoto, Katsina and Delta states and residents in some of these states now must pay as high as N1,400 per kilogram when they go to refill their gas canisters.
However, no official reason was given for the scarcity. Olatunbosun said:
- “In my own gas plant, I sell at N950 per 1kg. So, by all means, the masses should try not to patronize those who do not have gas plants because they will also add their profit. Those people are also part of the problem we are facing in the country.
- “As a matter of fact, prices would have further exploded more than it is now if not for the noise that we have been making. But prices are beginning to reduce at standard gas plants. It shouldn’t be more than N1000 per 1kg, and it will continue to go down.”
12.5kg refill cost could reach N18,000 by December 2023
He stated further that there is no justification for the current increase in refill prices. He said that stakeholders along the value chain were using the foreign exchange rate somersault as a reason to increase LPG prices, adding that 12.5kg refill prices could reach N18,000 by December 2023.
He said:
- “There is a ridiculous hike in gas prices going on right now, and I am afraid that if the federal government does not step in to checkmate the activities of these terminal owners, prices could reach as high as N18 million per metric ton by December. This means that a 12.5kg could go as high as N18,000″.
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In Abuja, the federal capital territory (FCT), cooking gas is not scarce, at least not yet. However, residents are buying the commodity for as high as N1,200 per kilogram.
However, Punch reports that in the earlier-mentioned states, cooking gas has become a luxury as residents have to resort to the black market to refill their gas canisters.
Note that Nairametrics recently reported on some factors that affect the cost and availability of cooking gas in Nigeria:
- The cost of LPG is tied to the exchange rate between the Naira and the Dollar. As the Naira weakens against the Dollar, it directly impacts the price of LPG. In just a year, the Naira weakened considerably against the Dollar, escalating from N565 to N1040 in October 2023. These shifts affect the price of LPG.
- Nigeria’s LPG market is supplied by both local production and imports. Local production covers a significant share, and imports bridge the supply gap. Nigeria’s Liquefied Natural Gas (NLNG) contributes about 40% of LPG demand through domestic production. The remaining 60% is imported.
- Rising demand after the fuel subsidy’s end in 2023 has increased LPG prices. Increased demand raises prices, while abundant supply typically reduces them. The Russia-Ukraine war has globally affected LPG prices, leading to disruptions and higher costs. Seasonal changes also influence pricing.
- Also, different-sized transportation vessels and land-based trucks affect LPG prices per metric ton, indicating economies of scale in logistics.
