This represents about a 114 per cent increase within the 16 months.
Our correspondent gathered that the increase in LPG is connected to the
rising exchange rate as the product is priced in dollars.
The devaluation/floating of the naira by the Tinubu administration has
left the naira in free fall, now trading at about N1,700 to a dollar from less
than N700 in May 2023.
According to the Managing Director/Chief Executive Officer of NIPCO Plc,
Suresh Kumar, over 60 per cent of the cooking gas consumed in Nigeria is
imported.
Speaking at the just-concluded National Conference of the Nigerian
Association of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar
revealed that local production of LPG remains inadequate, urging the Federal
Government to encourage Chevron to convert more of its propane output into
propane.
“Currently, less than 40 per cent of the 1.5 million metric tonnes
consumed domestically is produced locally. This is why the government must
encourage companies like Chevron to convert more of their propane output into
butane, which is more suitable for domestic use,” he explained.
Our correspondent observes that given the fluctuating exchange rate and
the country’s reliance on imports, there are concerns that the price of cooking
gas may continue to rise.
According to a report by the National Bureau of Statistics, the average
retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas increased
by 4.19 per cent on a month-on-month basis from N6,430.02 recorded in August
2024 to N6,699.63 in September 2024.
On a year-on-year basis, this increased by 59.90 per cent from N4,189.96
in September 2023.
*On state profile analysis, Rivers recorded the highest average price
for refilling a 5kg cylinder of cooking gas with N7,285.71, followed by Gombe
with N7,271.88, and Borno with N7,089.72,” the NBS said.
On the other hand, Kebbi was said to have recorded the lowest price at
N5,950, followed by Kano and Benue with N6,133 and N6,143 respectively.
“In addition, analysis by zone showed that the North-East recorded the
highest average retail price for refilling a 5kg cylinder of Liquefied
Petroleum Gas with N6,929.02, followed by the South-East with N6,893.47 while
the North-West recorded the lowest with N6,382.30,” the report noted.
The report added that the average retail price for refilling a 12.5kg
cylinder of cooking gas increased by 4.89 per cent on a month-on-month basis
from
“On a year-on-year basis, this rose by 76.41 per cent from N9,247.40 in
September 2023. On state profile analysis, Rivers recorded the highest average
retail price for the refilling of a 12.5kg cylinder of Liquefied Petroleum Gas
with N17,993 followed by Gombe with N17,943 and Zamfara with N17,475.
“Conversely, the lowest average price was recorded in Adamawa with
N13,983, followed by Nassarawa and Bauchi with N14,938 and N15,000
respectively.
“Analysis by zone showed that the South-East recorded the highest
average retail price for refilling a 12.5kg cylinder of Liquefied Petroleum Gas
with N16,957, followed by the South-West with N16,665 while the North-East
recorded the lowest price with N15,770.75,” the NBS report added.
According to Punch, the price of LPG has continued to increase from
around N300/kg in 2017, to about N1,500 in October 2024
This, coupled with the hardship being experienced as a result of fuel
subsidy removal and the floating of the naira, has caused Nigerians to resort
to the traditional ways of cooking with firewood.
There are concerns that the rise in the price of cooking gas may hinder
the country’s efforts to achieve clean cooking and reduce tree felling.
The Executive Director and Chief Financial Officer of Heirs Energies,
Samuel Nwanze, Nigeria needs $7.5bn to achieve clean cooking by 2030.
The Commissioner for Environment in Ogun State, Ola Oresanya, once told
one of our correspondents that many might resort to charcoal for cooking if the
price of LPG continues to rise.
The International Energy Agency said no fewer than 500,000 African women
die prematurely each year from cooking with firewood, charcoal, or stove.
The IEA said African women and their children lose their lives due to
lack of access to clean cooking.
“Women and children are being disproportionately impacted by the lack of
energy access, particularly to clean cooking.
“It is estimated that 500,000 women die prematurely every year in Africa
due to the lack of access to clean cooking.
“Women can spend up to four hours a day, just collecting the firewood,
robbing them of their time and preventing their educational and professional
aspirations,” the IEA stated.
0 Comments