The price of Liquefied Petroleum Gas, commonly known as cooking gas, has risen by 14.3 percent month-on-month to N1,500 per kilogram, up from N1,300 recorded last month..
The ex-depot price of the product also increased by 16.7 percent on a month-on-month basis to N21 million per 20 metric tonnes, compared to N18 million recorded in the previous month.
The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Inyang Edu, confirmed that the depot price had risen to N21 million, adding that the purchasing power of Nigerians had dropped drastically due to the hike.
According to him, dealers are now recording poor sales at their gas plants as consumers turn to other sources of energy.
“The depots sell at N1,065,000 per one metric ton, which gives a total of over N21 million for 20 metric tonnes. The depots include Rainoil, Nipco, Mobil, and Ardova. Before now, Nipco sold for N19.5 million per 20 metric tonnes, but it has now been increased to N21 million,” Edu said.
Commenting on the cause of the sharp increase, he said it was related to the ongoing Middle East crisis, which has affected not only cooking gas but also other petroleum products.
On supply from the Dangote refinery, Edu noted, “The refinery sells at a cheaper rate of about N16 million for 20 metric tonnes to their off-takers, who then include their profits, making the products expensive for marketers to buy.”
He added, “The supply from Dangote is limited. He recently announced that he only gets five out of 13 crude oil allocations he requires, as he imports crude oil to refine here in Nigeria. This will continue to hamper the price of petroleum products, coupled with the Middle East crisis that has disrupted oil production.”
