Cooking gas, also known as Liquefied Petroleum Gas (LPG), has become a rare commodity in Lagos, as confirmed by Oladapo Olatunbosun, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers. This scarcity has not been limited to Lagos alone but has extended to several other states across Nigeria. Olatunbosun’s statements were reported by Infostride News, highlighting the ongoing crisis in the LPG market.
According to Infostride News, the scarcity of cooking gas has impacted not only Lagos but also states such as Kano, Kaduna, Sokoto, Katsina, and Delta, with residents in these regions facing the challenge of paying as high as N1,400 per kilogram when they refill their gas canisters. The reasons behind this scarcity have not been officially disclosed, leaving consumers in the dark about the root causes of this problem.
As Olatunbosun pointed out, the price hike in the LPG market is a significant concern for the masses. In his gas plant, he sells at N950 per 1kg, and he urged consumers to avoid patronizing those who do not have gas plants as they tend to add their profit, contributing to the escalating prices. Olatunbosun emphasized that these unscrupulous practices in the industry exacerbate the problems faced by the country, and he called for the government’s intervention.

Moreover, Olatunbosun expressed concerns about the lack of justification for the current surge in refill prices. Many stakeholders in the LPG value chain have cited fluctuations in the foreign exchange rate as a reason for raising LPG prices. He warned that unless the federal government intervenes, prices could surge even higher, with the possibility of 12.5kg refill prices reaching as high as N18,000 by December 2023.
He stated, “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.”
In contrast to the situation in Lagos and other affected states, Abuja, the federal capital territory (FCT), has not experienced a shortage of cooking gas yet. However, residents in the FCT are still paying a high price for the commodity, with costs reaching as much as N1,200 per kilogram.
It’s important to note that Infostride News recently reported on various factors that influence the cost and availability of cooking gas in Nigeria. These factors shed light on the complexities of the LPG market and help explain the challenges faced by consumers:
1. Exchange Rate Influence: The cost of LPG is intricately 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. Over the past year, the Naira has significantly weakened against the Dollar, escalating from N565 to N1040 in October 2023. These currency fluctuations have a direct impact on the price of LPG, making it more expensive for consumers.
2. Domestic Production and Imports: Nigeria’s LPG market receives supply from both local production and imports. Local production accounts for a substantial portion, with imports filling the supply gap. Notably, Nigeria’s Liquefied Natural Gas (NLNG) plays a pivotal role by contributing approximately 40% of the LPG demand through domestic production. The remaining 60% is sourced through imports. This balance between local and imported supply can be influenced by various factors, affecting overall market stability.
3. Rising Demand and Subsidy Removal: The end of fuel subsidies in 2023 led to increased demand for LPG. Greater demand typically results in higher prices, while an oversupply typically leads to reduced costs. Additionally, the global impact of the Russia-Ukraine war has disrupted LPG prices, contributing to the current situation of higher costs.
4. Seasonal Fluctuations: Seasonal changes can also exert an influence on LPG pricing. The ebb and flow of demand throughout the year, driven by weather conditions and other factors, can contribute to price variations in the market.
5. Logistics and Transportation Costs: The use of different-sized transportation vessels and land-based trucks affects LPG prices per metric ton. This highlights the significance of economies of scale in logistics and transportation, which can influence the final cost to consumers.
In summary, the scarcity of cooking gas, as reported by Infostride News, is a pressing issue in Lagos and several other states in Nigeria. The causes of this scarcity are multifaceted, with factors like exchange rate fluctuations, supply dynamics, rising demand, and global disruptions playing a role in driving up prices. The situation calls for a coordinated effort between industry stakeholders and government intervention to ensure the availability and affordability of cooking gas for Nigerian consumers.
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