The price of refilling a 12.5kg cylinder of Liquefied Petroleum Gas, commonly known as cooking gas, has drastically increased this week to ₦25,000 from ₦17,500 the previous week.

Vanguard reported that the price of 1kg currently retails at between ₦1,500 and ₦2,000, depending on the location.

The Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Bassey Essien, attributed the price surge to a disruption in the product’s distribution caused by the recent industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria.

Essien said: “Dangote Petroleum Refinery is currently the highest local supplier of cooking gas in Nigeria. The crisis involving PENGASSAN scuttled distribution. Many dealers could not replenish their stocks during the period.”

He further explained the basic market mechanism at play, noting: ‘’What we are witnessing is a function of demand and supply. In practice, the demand for cooking gas is higher than supply. But supply would likely stabilise in the coming days, following resolution of the conflict.”

Vanguard also reported that many gas plants in Lagos and its environs were shut down yesterday due to a lack of product, forcing consumers to move from one location to another in search of gas.

The supply constraints follow an increased local production push. Recently, Aliko Dangote, President of the Dangote Group, disclosed that the refinery was currently producing 2,000 tonnes of LPG per day, adding that it planned to increase output further to meet the nation’s demand.

Expressing concerns about Nigeria’s energy poverty, Dangote issued a warning to the distribution chain, stating: “If the distributors are not trying to bring it down, we’ll go directly and sell to consumers so that people will now transit from firewood or kerosene to LPG for cooking.”

Before the intervention of the Dangote refinery, the nation’s LPG demand was largely met by the NLNG Limited.

In a report obtained yesterday, the NLNG limited detailed its commitment to domestic supply, stating: “At NLNG, we are committed to making clean, reliable energy accessible to every Nigerian home. Since 2007, under our Domestic LPG, DLPG, scheme, we have been supplying Butane – commonly known as cooking gas – to homes across Nigeria.”

The company highlighted its scaled-up commitment: “Over the years, we have steadily increased the volume reserved for the domestic market. In 2022, we took a bold step and committed 100% of our Butane production to Nigeria’s domestic needs. Thanks to this commitment, all of our Butane output is now fully absorbed locally.”

The NLNG further explained its distribution logistics: “To get cooking gas to Nigerian homes efficiently, NLNG supplies Butane to selected partners (our Off-takers) through approved coastal LPG terminals. These terminals are currently located in Lagos and Rivers States, with more facilities in Delta State under review – and plans underway to expand to even more locations. By reaching different regions, we are bringing cooking gas closer to consumers.”

The company concluded by emphasizing its efforts to ensure consistency: ‘’We have also chartered a dedicated vessel to ensure regular, reliable delivery of Butane to these terminals, making cooking gas more available, accessible, affordable, and acceptable across the country.”