The price per kilogram of Liquified Petroleum Gas (LPG), commonly known as cooking gas, has surged in Nigeria, according to recent market feedback. This follows a period in June when the price of LPG dropped to its lowest in four months, falling below ₦900 per kilogram......See Full Story>>.....See Full Story>>
June Price Decline
In June, market surveys showed a significant decrease in the price of cooking gas. This decline was attributed to various government measures, such as the removal of Value Added Tax (VAT) and import duties on LPG to enhance local supply. Additionally, the relative stability of the naira against the dollar in the foreign exchange market played a crucial role.
July Price Increase
However, in July, the price per kilogram of cooking gas has risen sharply to approximately ₦1,200, depending on the location and the seller. As a result, the cost for 6kg of LPG is now ₦7,200, and 12.5kg is priced at ₦15,000.
Reasons for the Hike
Marketers attribute this fresh increase to the high foreign exchange (FX) rate and market volatility. These factors have compounded the cost of importing and distributing LPG, leading to the price hike.
Inflation Impact
This price increase coincides with new data from the National Bureau of Statistics (NBS), which indicates that Nigeria’s inflation rate has hit a new high of 34.19% in June 2024. The rising inflation is primarily driven by the escalating cost of food items, pushing essential commodities beyond the reach of millions of Nigerians.
The recent surge in cooking gas prices adds to the financial strain on households already grappling with the high cost of living. As the market continues to react to economic pressures, consumers are advised to stay informed about price changes and explore alternative energy sources where possible.