John Ofem, JKNewsMedia Reporter
PERSISTENT FLUCTUATIONS in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, are intensifying economic pressure on households across Nigeria.
Families already burdened by rising food costs and inflation are now contending with soaring domestic energy prices that continue to vary sharply from one region to another.
Newly released market survey confirmed that the average retail price per kilogram stands at N1,050.
However, some areas are recording significantly higher figures, with rates climbing to N1,500 per kilogram depending on location, transportation costs, and individual dealer markups.
These disparities highlight the widening gap between urban and rural pricing, leaving many families vulnerable as they struggle to absorb the rising expenses associated with basic household cooking needs.
The impact of the increases is evident in the cost of refilling cylinders.
Based on the prevailing N1,050 per kilogram rate, the cost of a 1kg cylinder now stands at N1,050, while a 3kg refill costs N3,150.
A 5kg cylinder is priced at N5,250, with 10kg rising to ₦10,500. Families relying on 12kg cylinders now pay N12,600, while a 12.5kg cylinder refill costs N13,125.
These figures, however, are significantly higher in locations where dealers charge the top range of N1,500 per kilogram.
Industry observers note that the volatility in LPG pricing is the result of multiple interconnected factors.
Depot landing costs are a major driver, as the rates at which cooking gas arrives at coastal depots strongly determine the base retail price.
When landing costs rise, the increases are immediately passed down to wholesalers and retailers, ultimately reaching consumers.
Transportation remains another critical cost component.
With diesel prices climbing steadily, trucking costs for LPG distribution across long distances have surged.
Dealers operating outlets far from coastal depots in Lagos, Delta, Rivers, and Cross River States are compelled to raise their pump prices to cover higher haulage expenses.
This results in pronounced disparities between coastal states and landlocked regions such as those in the North, where families face some of the steepest LPG prices nationwide.
Foreign exchange volatility has also been identified as a significant contributor to the price fluctuations.
Much of Nigeria’s LPG supply still relies on imports, and changes in the naira-dollar exchange rate directly affect the cost of imported gas, equipment, and related infrastructure.
Whenever the naira depreciates, the increase is immediately reflected in retail LPG pricing.
Regional demand patterns further complicate the pricing framework.
Areas with high consumption levels, coupled with limited supply, frequently experience spikes in costs.
During periods of peak demand, particularly in urban centres where reliance on LPG is highest, scarcity can quickly trigger sharp upward adjustments.
Independent distributor markups have also played a role in sustaining the high price levels.
Marketers often adjust their prices to cover operating costs, such as shop rent, staff wages, and security, in addition to profit margins.
This practice results in variations even within the same city, as neighbouring retailers may set different rates depending on their cost structure.
The consequence of these dynamics is visible in households across the country, where consumers are forced to make difficult choices.
Many families are now rationing gas usage, switching intermittently to kerosene or firewood when costs spike beyond affordability.
For urban middle-class households that rely exclusively on LPG for cooking, the rising bills are straining already stretched monthly budgets.
Rural communities are even more affected, as limited supply and longer transportation routes drive prices to the upper end of the scale.
Economic analysts monitoring the downstream sector have stressed that stabilising LPG prices will require interventions at multiple levels.
They argue that expanding domestic production capacity is critical to reducing Nigeria’s dependence on imports and the associated exposure to foreign exchange fluctuations.
Efforts to strengthen storage and distribution infrastructure across inland regions are also considered necessary to address logistical bottlenecks that drive up haulage costs.
Depot operators have acknowledged the challenges posed by international market dynamics, with import-dependent supplies subject to global price shifts.
They maintain that the combination of currency volatility, rising shipping costs, and local transportation challenges makes it difficult to guarantee stable pricing.
Dealers insist that their markups reflect operational realities, including higher diesel bills and security expenses tied to moving LPG across insecure routes.
Families, however, continue to bear the brunt of the increases, with many expressing concerns that the unpredictable pricing pattern could worsen in the months ahead if solutions are not implemented.
With the average cylinder refill consuming an increasing share of household income, particularly among lower and middle-income groups, the affordability of cooking gas remains a pressing challenge in Nigeria’s domestic energy landscape.
The latest survey findings underline the widening pressure on living standards as Nigerians navigate rising costs for food, electricity, transport, and now cooking gas.
Without policy interventions or stabilisation mechanisms, the volatility of LPG prices is expected to persist, leaving consumers exposed to sudden price hikes and uncertainty over household energy expenses.
