The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has seen a notable reduction across various parts of Nigeria.
A recent market survey revealed that the cost per kilogram, which previously ranged up to ₦1,500 in certain retail outlets, has now dropped to between ₦900 and ₦1,000 in locations such as Ogun and Lagos States.
Similarly, the average cost of refilling a 12.5kg gas cylinder has declined from about ₦17,000 to between ₦13,750 and ₦14,000.
Many Nigerians have expressed relief over this price adjustment, attributing it to improved supply and increased domestic production. Speaking on this development, Mr. Oladapo Olatunbosun, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), emphasized that the price reduction aligns with commitments made by government authorities to stabilize the market.
He credited the decline primarily to enhanced local production, particularly with the entry of Dangote Refinery into the market. Unlike previous distribution models, where middlemen played a significant role in price inflation, Dangote’s direct-to-marketer sales strategy has contributed to the more affordable rates currently being experienced.
“The way Dangote Refinery has structured its sales process is different from what we had before. By eliminating middlemen, gas is now reaching marketers at lower prices, allowing for competitive pricing in the market. This competition is driving down the overall cost,” Olatunbosun explained.
Beyond Dangote’s contribution, other domestic producers have also increased their output, further boosting supply and ensuring that Nigeria relies less on imported LPG. This shift has helped reduce external cost factors such as foreign exchange fluctuations, which previously played a significant role in price hikes.
Despite the recent reductions, industry experts believe the price could drop even further as production continues to rise. The federal government has also commissioned new gas plants, such as the one in Rivers State, which is expected to enhance availability in the market.
However, stakeholders stress that for the benefits of price reductions to reach all Nigerians, LPG usage must expand beyond urban centers. Currently, only 25% of Nigerians use cooking gas, with most rural areas still dependent on firewood and other traditional fuels. Experts argue that affordability is key to increasing adoption rates and further reductions in price will encourage more households to transition to gas.
Another major focus is regulation and price control to prevent artificial price inflation by distributors. Olatunbosun highlighted the role of government agencies in monitoring the market to ensure that gas remains accessible and affordable to consumers.
“As an association, we have urged our members to reflect the price reductions in their retail rates. There is no justification for excessive pricing when supply is abundant. With direct sales from refineries and competitive pricing, we expect the market to remain fair and consumer-friendly,” he stated.
In addition to price concerns, discussions around safety standards and equipment quality remain ongoing. Stakeholders believe that with proper government intervention and consumer education, the adoption of LPG as a primary cooking fuel will increase significantly across Nigeria.
SOURCE: RealsourceNews247