The price of liquified petroleum gas (LPG), also known as cooking gas, has increased again after crashing in June.
Findings showed that it now costs about N14,500 to refill a 12.5kg cylinder, N7,200 for 6kg, and N1,200 for 1kg.
New prices for cooking gas emerge
The commodity’s price crashed in June when a 12.5kg refill was sold for N13,200, 6kg for N6,600, and 1kg for N1,100.
In May, the commodity’s price remained stable following foreign exchange stability.
Cooking gas dealers blamed the volatile foreign exchange for the price rise, saying that most dealers had to rely on imported products rather than the Nigerian NLG Limited supply.
Dealers, who spoke anonymously, said that the price increase was due to the high FX rate and volatility.
“There is always a pattern with our sales. Each time the FX market is stable in the Forex market, the prices remain stable and affordable. The market reacts to fluctuations in the Forex market,” one of the dealers stated.
Foreign exchange affects LPG prices
Reports say the dealers revealed plans to maintain a stable rate for the product, but high forex has remained an obstacle.
According to the dealers, each time there is an increase, their sales plummet as users switch to alternative energy sources such as electric stoves and charcoal.
Marketers warn of continued price increase
Naturenex reported that the president of the Nigerian Association of Liquified Petroleum Gas Martkers (NALPM), Oladapo Olatubosun, warned that cooking gas prices would continue to skyrocket as exchange rate volatility continues to impact the domestic market.
Olatunbosun said:
“It is expected that when the foreign exchange increases, the price of LPG will follow suit because it is still priced and determined by the flow of forex.”
Analysts believe that the Nigerian government’s policies, such as removing import duties and VAT from imported LPG and free distribution of one million gas cylinders, have not positively affected prices.
Also, the price is susceptible to inflationary trends, which the National Bureau of Statistics says soared to 34.19% in June.
