Cooking gas price drops to N1,400/kg, say retailers

Retailers of cooking gas report that the prices of this essential commodity have decreased from N2,000 per kilogram in the last three weeks, now ranging between N1,300 and N1,500 over the weekend.

The retailers indicated that this represents a notable improvement, as liquefied petroleum gas is now more readily available for both retailers and consumers.

Ayobami Olarinoye, the Chairman of the Liquefied Petroleum Gas Retailers Association of Nigeria, confirmed this development to our correspondent.

Olarinoye mentioned that while normalcy has not yet been completely restored, there is a noticeable difference in pricing.

"The product is gradually circulating. There is an increase in supply. The price is dropping but not yet back to the former price. It is now between N1,300 and N1,600, depending on the location," Olarinoye stated.

He mentioned that the LPG market is currently unstable, yet he expressed optimism that conditions would improve further this week if the supply continues.

"The market is not yet stable, but there is considerable improvement. Hopefully, we shall attain stability in another one week if the supply is sustained," he added.

Meanwhile, consumers reported that gas shops in various neighborhoods have also lowered their prices compared to previous weeks. However, Nigerians indicated that they are waiting for the price to revert to N900/kg or lower.

Recently, the prices of cooking gas surged from an average of N1,000 per kilogram to approximately N2,000/kg in certain areas. This increase followed a recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria during the conflict with the Dangote refinery.

Over two weeks after the strike was called off, the prices of cooking gas have not decreased, and the scarcity has worsened.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, intervened in the situation last week, pledging to take action against marketers who hoard or exploit consumers.

This occurred as retailers voiced their concerns regarding the discrepancies between the prices set by the Dangote refinery and those at which off-takers sold the product in the market.

It is worth noting that Alhaji Aliko Dangote previously threatened to distribute cooking gas himself if the distributors did not collaborate with him to lower the prices.

Last week, Olarinoye reported that the Dangote refinery sold LPG at N15.8 million per 20,000 metric tonnes to off-takers and major distributors, who then resold the same quantity between N18.4 million and N18.5 million to retailers.

Sources at the Dangote refinery informed our correspondent that "the marketers acquire product from us at N715,000/MT, down from N790,000/MT."

They indicated that there are 1,000 kg in a single metric tonne.

"In one metric tonne, there are 1,000 kg. Marketers collect LPG at N715/kg from the refinery. We do not regulate the retail price. As per the Petroleum Industry Act and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, only the government has the authority to set prices. We can only manage what we sell at the refinery. If they retail at N2,000/kg after purchasing at N715/kg, there is nothing we can do," the sources stated.

Previously, the Nigerian Association of Liquefied Petroleum Gas Marketers had claimed that retailers were responsible for the recent increase in cooking gas prices nationwide.

NALPGAM’s National President, Oladapo Olatunbosun, reportedly attributed the price increase to gas retailers during a discussion on Channels television.

Nevertheless, LPG retailers contested this, labeling Olatunbosun’s remarks as "unjust and misinformed."