Nigerians are facing yet another wave of hardship as the price of Liquefied Petroleum Gas (LPG), commonly used for cooking, skyrockets to an all-time high of ₦1,500 per kilogram. This latest surge has driven the cost of a 12.5kg cylinder to an average of ₦17,000 in Abuja, a staggering 41.6% increase since July when it was priced at around ₦12,000.
In other parts of the country, such as Ogun and Lagos, retail prices range between ₦1,300 and ₦1,500 per kilogram, further straining household budgets already burdened by rising fuel costs.
Suresh Kumar, the Managing Director and CEO of NIPCO Plc, expressed concern over Nigeria’s heavy reliance on imported LPG. Speaking at the recent National Conference of the Nigerian Association of LPG Marketers in Lagos, Kumar highlighted the need for increased domestic production.
“Currently, less than 40% of the 1.5 million metric tonnes of LPG consumed in Nigeria is produced locally,” he stated. “The government must encourage companies like Chevron to convert more propane into butane, which is more suitable for domestic use.”
The shortage of locally produced LPG has exacerbated the price hike, pushing many Nigerians to switch to alternative, less efficient cooking fuels like charcoal. Ogun State’s Commissioner for Environment, Ola Oresanya, warned that if prices continue to rise, more families will be forced to adopt these less sustainable cooking methods.
Despite the grim situation, Kumar remains optimistic. He pointed to the potential of local refinery outputs, including from the Dangote Refinery, which is now sourcing crude oil locally. He believes this will ease the country’s reliance on LPG imports and help mitigate the impact of foreign exchange fluctuations on prices.
“There is hope that with increased local production, the reliance on imported LPG will decrease, which will positively influence domestic prices,” Kumar noted.
However, Kumar also stressed the need for greater investment in Nigeria’s gas infrastructure to meet rising demand. “Our latest assessments show that the existing downstream infrastructure can handle up to 5 million metric tonnes annually. This positions us to accommodate increased production from local gas fields,” he said.
NIPCO, a key player in the LPG market since 2004, has invested significantly in infrastructure to make cooking gas more accessible. “Our facility in Apapa, which started with a 5,000 metric tonne capacity, now exceeds 20,000 metric tonnes,” Kumar stated, underscoring the company’s commitment to supporting the nation’s energy needs.
Kumar called on the government to provide more support to local refineries to boost LPG production. “It is crucial for the government to back these refineries in significantly increasing output. This will help drive down retail prices and make LPG more affordable for Nigerians,” he urged.
As high prices continue to dampen LPG consumption, Kumar remains hopeful that the situation will improve as more local players enter the market. “The current high prices are temporary. With more entrants in gas processing, we anticipate a market correction soon,” he concluded, calling for collaborative efforts to unlock the full potential of Nigeria’s vast gas reserves.
