The price of Liquified Petroleum Gas (LPG), commonly known as cooking gas, has increased in Nigeria according to recent market reports. This surge comes after a period in June when LPG prices fell to their lowest point in four months, dropping below ₦900 per kilogram.
June Price Decline
In June, surveys revealed a significant decrease in cooking gas prices. This reduction was due to various government measures, including the removal of Value Added Tax (VAT) and import duties on LPG to boost local supply. The stable exchange rate of the naira against the dollar also played a key role in this decline.
July Price Increase
However, in July, the price per kilogram of cooking gas has spiked to around ₦1,200, varying by location and seller. Consequently, the cost for 6kg of LPG is now ₦7,200, while 12.5kg is priced at ₦15,000.
Reasons for the Hike
Marketers attribute this recent increase to the high foreign exchange (FX) rate and market volatility. These factors have raised the costs of importing and distributing LPG, leading to higher prices.
Inflation Impact
The price hike coincides with new data from the National Bureau of Statistics (NBS), which shows Nigeria’s inflation rate reached 34.19% in June 2024. The rising inflation, driven by increasing food costs, has made essential commodities unaffordable for many Nigerians. The recent surge in cooking gas prices further strains households already struggling with the high cost of living. As the market continues to adjust to economic pressures, consumers are advised to stay informed about price changes and consider alternative energy sources where feasible.
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