Despite improved availability of cooking gas following the Federal Government’s intervention in the liquefied petroleum gas (LPG) market, retail prices have yet to return to previous levels, according to industry marketers.
Two weeks after an emergency stakeholders’ meeting convened in Abuja by the Minister of State for Petroleum Resources (Gas), Senator Ekperikpe Ekpo, supply conditions have improved significantly. However, consumers across Nigeria are still paying between N1,300 and N1,650 per kilogramme for cooking gas.
Before the supply disruption that began in May, LPG sold for less than N1,000 per kilogramme. Prices later surged, reaching as high as N2,500 per kilogramme in some parts of the country before the government’s intervention.
Speaking on the current market situation, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, said prices have declined from their peak but have not yet returned to normal levels.
According to Inyang, the emergency meeting was convened after a sharp increase in terminal prices triggered widespread shortages, higher depot and landing costs, rising transportation expenses, panic buying, and speculative stockpiling. These factors pushed retail prices to between N1,800 and N2,500 per kilogramme in many cities.
He noted that the price spike threatened the Federal Government’s Decade of Gas initiative, as many households abandoned cooking gas in favour of firewood and charcoal due to rising costs.
Inyang added that one of the major outcomes of the Abuja meeting was a significant improvement in product availability nationwide.
He revealed that Nigeria’s LPG supply sufficiency increased from approximately 11 days to 22 days, while average daily supply rose from about 4,262 metric tonnes in May to more than 5,000 metric tonnes in June.
Although supply has improved and market pressure has eased, marketers say further efforts are needed to bring cooking gas prices back to affordable levels for consumers across the country.
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