Cooking Gas Price Hits 103% Above Its January Price
With LPG now selling at ₦650 per kg, the most popularly bought 12.5kg cooking gas has now hit ₦8,125, representing a 103% increase from its January price of ₦4,000. This rising price continues to be a major issue for Nigerian households.
Reasons for the rise in price
The Nigerian Liquified Natural Gas (NLNG) produces roughly 450,000 metric tons of LPG which is 850,000 metric tons short of the nation’s demand of 1.3 million metric tons of gas. This has led to the country’s significant dependence on the importation of LPG.
Global gas crisis
Liquified Petroleum Gas (LPG) price in Nigeria is tied to the international market price. The global gas market is also experiencing inadequate supply following the COVID-19 lockdown. Global gas supply has failed to meet its pre-lockdown levels.
Coupling the global gas shortages with Nigeria’s exchange rate problems, gas prices in the country are rising in correlation to the dollar, posing a significant threat to Nigerians and their quality of life.
In 2019, the federal government exempted imported LPG from the 7.5% VAT but its recent re-introduction is another factor responsible for the surging gas prices in the country (with gas suppliers factoring this additional cost into retail gas prices).