Price of Cooking Gas Declined by 20 Percent Amid Naira Devaluation

Inability to effectively structure and monitor the supply chain of Liquefied Petroleum Gas, popularly known as cooking gas, across the country amid rising Naira-Dollar exchange has led to a 20 percent increase in the price of cooking gas.

Marketers that spoke with our correspondent said 20 metric tonnes of LPG now sells for N5.3 million as of Monday, up from an average of N4.4 million a month ago.

According to some retail shops visited by our correspondent, refilling a 12.5kg cylinder rose from N3,200 in November to N4,000 on Tuesday.

Mr. Bassey Essien, the Executive Secretary and Chief Executive Officer, Nigerian Association of LPG Marketers, said only about 35 percent of the LPG consumed in Nigeria is supply locally while 65 remaining is imported.

He explained that many privately-owned terminals had to rely on importation due to the limited amount supply from the Nigeria LNG Limited.

“In the process of importing LPG, the CBN does not have any particular foreign exchange window for LPG importers like it has for other sectors. So, they find their own forex whatever way they can. At a point, the naira was 500 per dollar,” he said.

Essien added that another reason price rose in recent weeks was the surge in global demand for gas during winter.

“Since a greater chunk of what we consume is imported, we have to face the problem of foreign exchange dynamics. It is not something we are happy about,” he stated.