Report
RISING COSTS in the domestic gas market have pushed the price of Liquefied Petroleum Gas (LPG) to N1,500 per kilogramme, marking a 14.3 percent increase from N1,300 recorded last month.
Market checks by Vanguard newspaper indicated that cooking gas now sells as high as N1,500 per kilogramme across several locations, reflecting a sustained upward trend in retail pricing.
At the supply level, the depot price rose by 16.7 percent on a month-on-month basis to N21m per 20 metric tonnes, compared with N18m recorded in the previous month.
National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM), Mr Inyang Edu, confirmed the increase, stating that depot prices had reached N21m for 20 metric tonnes.
He said the development had significantly reduced consumers’ purchasing power and weakened demand.
He said dealers were recording poor sales across gas plants as consumers increasingly turned to alternative energy sources.
“The depots sell N1,065,000 per one metric ton which gives a total of over N21m for 20 metric tonnes.
“The depots include Rainoil, Nipco, Mobil, Ardova. Before now, Nipco sold for N19.5m per 20 metric tonnes but it has now been increased to N21m,” he said.
On the drivers of the increase, Edu linked the price surge to the Middle East crisis, stating that it had affected cooking gas and other petroleum products.
Addressing supply from Dangote refinery, he said the refinery sold at about N16m per 20 metric tonnes to off takers, who then added margins, raising costs for marketers.
“The supply from Dangote is limited, he recently announced that he only gets five out of 13 crude oil allocations it required, as he imports crude oil to refine here in Nigeria,” he added.
He noted that the situation would continue to impact petroleum product prices alongside disruptions in oil production linked to the Middle East crisis.
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