Dealers crash cooking gas price to N1,100 per kg as stronger naira pushes down costs

Prices of liquified natural gas (LPG), also known as cooking gas, are beginning to crash following the appreciation of the Nigerian currency, the naira.

Findings by Legit.ng show that sellers crashed cooking gas prices from N1,500 per kg to about N1,100.

Cooking price crashes from N1,500/kg

In March 2024, some Nigerians and gas dealers in the Federal Capital Territory (FCT) criticised the rising price of cooking gas and called on the Nigerian government to intervene urgently.

The News Agency of Nigeria (NAN) said dealers and residents expressed anger over the continued rise in the cost of the product and its effect on Nigerians and the cost of living. However, a market survey by Legit.ng shows that dealers have brought down the commodity price.

Cooking sells from N15.400 per 12.5kg

At the Gasland plant in the Iju-Ishaga area of Lagos, the product's retail price was as low as N1,100 per kg, down from the N1,500 it sold in March.

A 12.5kg of gas sold for N14.400 two weeks ago now sells for N13.300.

A Gasland plant manager who spoke anonymously attributed the price crash to the availability of forex for imports, saying the naira gains have contributed to the price reduction.

“Everyone knows that the dollar is crashing, and Nigeria imports most of the LPG consumed there. So, we can say the naira gain is helping to push down the cost of the commodity.

“Two or three weeks ago, our facility sold 12.5 kg for as high as N15,600 because of the scarcity of forex. Also, we had mostly old stocks purchased using the exchange rate of N1,500 per dollar.

“But now that the FX is hovering between N1,200 and N1,100 per dollar, it will be absurd to continue to sell at the old price it sold when forex was scarce and high."

Naira gains help improve cooking gas price

He said prices may crash further if the Central Bank of Nigeria (CBN) continues its forex interventions.

The naira has been trading at a high of N1,100 per dollar in the parallel market and N1,148 per dollar in the official market, up from the N1,600 it traded in February and early March 2024.

The Nigerian government included LPG among items that qualified for tax waiver to reduce the cost of the product.

Legit.ng reported that Nigeria LNG Limited (NLNG) supplies about 1.5 million tons of LPG to the domestic Nigerian market. The company clarified that it provides nearly 500.000 metric tons of LPG annually to meet local demands.

This development is in pursuit of the company's commitment to deliver 100% of its LPG production to the domestic market, which was decided by the company’s board of directors.