By Okafor Joseph Afam | December 3, 2024

The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has continued to climb across Nigeria, despite the federal government’s recent export ban aimed at stabilizing domestic supply.

Consumers across the country are grappling with a 45.8% surge in prices in some areas, leaving many households struggling to afford this essential commodity.

For Maria Okafor, a single mother of three, the rising costs have made cooking gas an unaffordable luxury.
“Last month, I bought a 12.5kg cylinder for N12,000. Today, they’re asking for N17,500. How are we supposed to survive?” she lamented outside her roadside kiosk.

Similarly, Grace Adebowale, a Lagos resident, has been forced to revert to traditional cooking methods.
“We’ve started using charcoal again,” she said. “It’s slower, dirtier, and more stressful. My children complain about the smoke, and it feels like we’re going backwards.”

Small business owners are also bearing the brunt of the crisis. Adewale Ogunleye, who runs a roadside food stall in Abuja, said the soaring cost of gas has slashed his profit margins.
“Cooking gas is my biggest expense. If the prices keep going up, I’ll have to increase food prices, and customers won’t come,” he explained. Ogunleye has reluctantly switched to firewood, citing its lower cost but acknowledging its impact on the environment and food quality.

Data Highlights Soaring Costs

The National Bureau of Statistics (NBS) reports that the average price for refilling a 12.5kg LPG cylinder rose by 58.68% year-on-year, from N10,545.87 in October 2023 to N16,734.55 in October 2024. A smaller 5kg cylinder now costs N6,915.69, up 51.58% from N4,562.51 a year earlier.

Regional disparities further compound the crisis. Residents of Borno State pay the highest for a 5kg refill at N7,939, while Rivers State tops the charts for 12.5kg cylinders at N17,895. Meanwhile, Katsina State offers some relief, with the lowest prices of N6,270 and N14,725 for 5kg and 12.5kg refills, respectively.

Export Ban and Supply Challenges

The federal government’s LPG export ban, introduced last month, was meant to prioritize domestic consumption and reduce dependency on imports. However, experts argue that the policy has not addressed underlying issues like limited processing and distribution capacity.

“While the export freeze was intended to stabilize local supply, production costs remain high, and distribution inefficiencies persist,” said Nathaniel Adebayo, an economist and energy analyst. He also noted that international factors, including rising crude oil prices and geopolitical tensions, are exacerbating the situation.

Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), recently announced ongoing efforts to strengthen domestic gas supply through partnerships with Chevron and ExxonMobil.
“We are engaging stakeholders to domesticate LPG production, similar to what Nigerian Liquefied Natural Gas (NLNG) achieved with butane production,” Ahmed said during the 2024 OTL Africa Downstream Energy Week in Lagos.

The Way Forward

While the government’s efforts to boost domestic supply are a step in the right direction, experts emphasize the need for long-term investments in processing facilities, distribution networks, and renewable alternatives. Without these measures, the rising cost of cooking gas may continue to weigh heavily on Nigerian households and businesses.

For now, millions of Nigerians are left with few options, forced to choose between cutting back on their gas usage or reverting to outdated and environmentally harmful methods of cooking.