The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has indeed attributed the surge in cooking gas prices to temporary supply disruptions and market exploitation by some operators. The current price hike is largely due to the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and delayed distribution from the Dangote Refinery, leading to a 34.6% price increase in just one week.
Key Factors Contributing to Price Surge:
– Supply Disruptions: Industrial action by PENGASSAN and delayed distribution from Dangote Refinery
– Market Exploitation: Some operators taking advantage of the situation to hike prices
– Import Reliance: Nigeria relies heavily on imported LPG, making prices vulnerable to global market fluctuations and currency instability
– Naira Depreciation: Weakening naira contributes to increased costs for importers
Current Prices:
– 1kg of LPG ranges between ₦1,350 and ₦1,500
– 12.5kg cylinder refill costs around ₦17,000 – ₦17,500
The situation is expected to stabilize as domestic production increases, particularly with the Dangote Refinery and other local refineries ramping up production.
