The price of Liquefied Petroleum Gas, also known as cooking gas, has increased to N1,500/kg.
According to the Managing Director/Chief Executive Officer of NIPCO Plc, Suresh Kumar, over 60 per cent of cooking gas consumed in Nigeria is being imported therefore the emergence of Dangote refinery and other domestic refineries would bring down the price of cooking gas .
However, on Sunday, October 14, the prices of cooking gas peaked at N1,500/kg in retail outlets in Ogun and Lagos States while in Abuja, the average price for refilling a 12.5kg cylinder of cooking gas has increased by 41.6 per cent to N17,000 in different areas.
This sharp price rise has implications for consumers, many of whom rely on LPG for their daily cooking needs.
Speaking at the just-concluded National Conference of the Nigerian Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar, revealed that local production of LPG remains inadequate, urging the Federal Government to encourage Chevron to convert more of its propane output into butane.
“Currently, less than 40 per cent of the 1.5 million metric tonnes consumed domestically is produced locally. This is why the government must encourage companies like Chevron to convert more of their propane output into butane, which is more suitable for domestic use,” he explained.
“With the Dangote refinery and other refineries now sourcing crude oil in local currency, the volume of LPG produced locally is expected to increase, which will, in turn, drive down the price of the commodity,” the MD explained.
He added, “There is hope that the reliance on imported LPG will decrease, which will positively influence the prices at which the product is sold domestically. Greater local production will make LPG more affordable since it reduces exposure to foreign exchange fluctuations and international pricing dynamics.”