Cooking Gas Prices Down to N900/kg Following Government Intervention

Households in Nigeria are finally experiencing some relief as the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has dropped to N900 per kilogram (kg).

This reduction marks a significant decrease from the previous price of N1,500 per kg, which had placed a heavy burden on many families’ budgets.

Oladapo Olatunbosun, the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), highlighted the impact of the federal government’s decision to suspend LPG exports, which was announced on February 22, 2024, aimed at stabilizing the cost of cooking gas.

During a meeting with Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), Olatunbosun expressed appreciation for the policy, stating that the ban on LPG exports has already begun to show positive changes in the market, benefiting consumers.

Before the export ban, cooking gas prices had surged to N1,500 per kg. Following the halt in exports, Olatunbosun reported a significant price drop to between N900 and N1,000 per kg. This translates to potential savings of N500 or more per kg for Nigerian households.

Ekpo acknowledged the paradox of Nigeria being a major gas producer with low domestic consumption rates. He reaffirmed President Bola Tinubu’s commitment to increasing gas accessibility across the country, ensuring that Nigeria’s vast gas resources are available domestically at affordable prices.

Olatunbosun also noted that the wholesale price of LPG had decreased from N20 million to N15 million per 20 metric tonnes, indicating a more stable and affordable supply chain for LPG nationwide. He highlighted that consumers who had abandoned the use of gas cylinders due to high prices are now returning to this cleaner cooking option.

“We had drawn the minister’s attention to the fact that some international oil companies operating in Nigeria had been exporting huge volumes of gas,” Olatunbosun said, underscoring the association’s concerns.

Ekpo praised the cooperation of gas marketers in adjusting prices to reflect the new market reality and emphasized the government’s ongoing efforts to ensure that Nigerians benefit from the country’s abundant gas reserves, aligning with President Tinubu’s economic goals.

The reduction in LPG prices is expected to alleviate the financial burden on households and encourage more Nigerians to use cleaner cooking alternatives, supporting the country’s energy transition goals.