As Nigerians grapple with soaring petrol prices, the cost of Liquefied Petroleum Gas has surged to N1,500 per kilogram.
Suresh Kumar, Managing Director of NIPCO Plc, expressed optimism that the forthcoming Dangote refinery and other domestic refineries could help lower cooking gas prices. Currently, over 60% of LPG consumed in Nigeria is imported.
Recent checks revealed that retail prices have peaked at N1,500/kg in Lagos and Ogun states, while in Abuja, refilling a 12.5kg cylinder now averages N17,000—up 41.6% from N12,000 in July. The ongoing price hikes pose challenges for households reliant on LPG for cooking.
Minister of State for Petroleum Resources, Ekperikpe Ekpo, previously promised measures to reduce LPG costs, but recent surveys indicate prices continue to rise. In Lokogoma, a cylinder now costs N17,000, while in Kubwa, prices range between N16,200 and N16,500.
Kumar highlighted that local production remains inadequate, urging the government to encourage companies like Chevron to increase propane conversion for domestic use. Currently, only 40% of Nigeria’s LPG consumption is produced locally, and Kumar believes that enhancing domestic production could stabilize prices by reducing reliance on imports.
He emphasized the need for greater investments in gas infrastructure and called on the government to support local refineries to boost LPG output, making the commodity more accessible to the Nigerian populace. Despite recent price increases, Kumar is hopeful for a market correction as more players enter the gas processing sector.
