- The price of liquified natural gas (LPG), also known as cooking gas, is beginning to moderate as the naira gains in all the markets.
- Dealers and sellers crashed the price of the product from N1,500 to about 1,100 per kilogramme.
- The dealers attributed the price crash to the appreciation of the naira against the dollar, as the commodity is chiefly imported.
Prices of liquified natural gas (LPG), also known as cooking gas, are beginning to crash following the appreciation of the Nigerian currency, the naira. Findings by Legit.ng show that sellers crashed cooking gas prices from N1,500 per kg to about N1,100.
Cooking price crashes from N1,500/kg
In March 2024, some Nigerians and gas dealers in the Federal Capital Territory (FCT) criticised the rising price of cooking gas and called on the Nigerian government to intervene urgently.
The News Agency of Nigeria (NAN) said dealers and residents expressed anger over the continued rise in the cost of the product and its effect on Nigerians and the cost of living. However, a market survey by Legit.ng shows that dealers have brought down the commodity price.
Cooking sells from N15.400 per 12.5kg
At the Gasland plant in the Iju-Ishaga area of Lagos, the product’s retail price was as low as N1,100 per kg, down from the N1,500 it sold in March.
A 12.5kg of gas sold for N14.400 two weeks ago now sells for N13.300. A Gasland plant manager who spoke anonymously attributed the price crash to the availability of forex for imports, saying the naira gains have contributed to the price reduction. “Everyone knows that the dollar is crashing, and Nigeria imports most of the LPG consumed there. So, we can say the naira gain is helping to push down the cost of the commodity.
Two or three weeks ago, our facility sold 12.5 kg for as high as N15,600 because of the scarcity of forex. Also, we had mostly old stocks purchased using the exchange rate of N1,500 per dollar. “But now that the FX is hovering between N1,200 and N1,100 per dollar, it will be absurd to continue to sell at the old price it sold when forex was scarce and high.
