As of January 31, 2025, the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has significantly increased in Nigeria over the past year.
Current Retail Prices:
Per Kilogram: The average retail price for LPG is approximately ₦1,300 per kilogram.
12.5kg Cylinder: Refilling a standard 12.5kg cylinder costs around ₦17,000, reflecting a 41.6% increase from ₦12,000 in July 2024.
Price Breakdown by Cylinder Size:
3kg Cylinder: ₦3,900
5kg Cylinder: ₦6,500
6kg Cylinder: ₦7,800
10kg Cylinder: ₦13,000
12.5kg Cylinder: ₦16,250
Factors Influencing Price Fluctuations:
Global Crude Oil Prices: LPG prices are closely linked to global crude oil prices. Fluctuations in the international oil market directly affect the cost of LPG imports, as Nigeria relies heavily on imported cooking gas.
Exchange Rate Instability: The depreciation of the Nigerian Naira against major currencies has increased the cost of importing LPG, leading to higher retail prices domestically.
Seasonal Demand: During festive seasons and holidays, the demand for cooking gas typically rises, exerting upward pressure on prices, especially in urban areas where LPG is widely used for cooking during celebrations.
Regional Price Variations:
Prices vary across different regions in Nigeria. For instance, the North-East recorded the highest average retail price for refilling a 5kg cylinder at ₦6,929.02, followed by the South-East at ₦6,835.07. The South-West had the lowest average price at ₦5,400.30.
Depot Prices:
Depot prices for a 20 metric ton (MT) load of LPG also vary. For example, as of January 31, 2025, NIPCO’s depot price was ₦20,100,000, while NAVGAS listed ₦20,500,000.
Impact on Households:
The rising cost of cooking gas has significantly impacted Nigerian households, leading to increased living expenses and prompting some to revert to alternative cooking methods, such as using firewood or charcoal, which have environmental and health implications.
In response to the escalating prices, the Nigerian government has been encouraging the adoption of Compressed Natural Gas (CNG) as an alternative energy source.
The Presidential CNG Initiative aims to use Nigeria’s vast gas reserves to provide citizens with a more affordable and cleaner energy option.