Cooking gas prices soar by 44.62% in one year, NBS report reveals

The Nigeria Bureau of Statistics (NBS) has reported a significant surge in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, over the past year.

According to the NBS Liquefied Petroleum Gas (Cooking Gas) Price Watch for December 2024, the average retail price for refilling a 5kg cylinder rose by 44.62% in a year-on-year comparison, climbing from ₦4,962.87 in December 2023 to ₦7,177.27 in December 2024.

On a month-on-month basis, the price also showed a modest increase. In November 2024, the average retail price stood at ₦7,088.16, which rose by 1.26% to ₦7,177.27 in December 2024.

The report highlights variations in prices across Nigerian states. Taraba recorded the highest average price for refilling a 5kg cylinder at ₦8,074.41, followed by Lagos with ₦7,910.71 and Benue at ₦7,900.00.

On the other hand, Delta offered the lowest average price at ₦6,455.00, trailed by Ondo (₦6,683.33) and Zamfara (₦6,778.57).

For larger households using 12.5kg cylinders, the price hike was even steeper. The average retail price jumped by 50.08%, from ₦11,510.16 in December 2023 to ₦17,274.16 in December 2024.

However, on a month-on-month basis, the price dipped slightly by 0.05%, decreasing from ₦17,283.58 in November 2024.

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Highest and Lowest Prices for 12.5kg Cylinder: Taraba: ₦20,290.75; Yobe: ₦19,000.00; Rivers: ₦18,710.94; Kebbi: ₦15,733.33; Nasarawa: ₦15,875.00 and Kwara: ₦16,109.38

The price disparity also extended to geopolitical zones, with the North-East recording the highest average retail price for a 12.5kg cylinder at ₦18,173.90, followed by the South-West at ₦17,544.26.

The North-Central region reported the lowest price at ₦16,482.47. Other zones reported the following averages: North-West: ₦16,959.47; South-East: ₦17,100.94; South-South: ₦17,539.44

Despite the surge in LPG prices, adoption remains low. The NBS 2024 Nigeria Residential Energy Demand-Side Survey (NREDSS) revealed that only 19.4% of Nigerian households use LPG for domestic, agricultural, commercial, cultural, or religious purposes.

This highlights the financial barriers many Nigerians face in transitioning to clean cooking energy.

To address these challenges, the Federal Government banned the export of cooking gas on November 1, 2024, with the aim of stabilizing domestic prices and increasing availability.

While this move is expected to ease some of the financial burdens on Nigerians, the impact of the policy remains uncertain.

Recent market surveys in Lagos indicate that a 5kg cylinder of LPG currently costs around ₦7,000, reflecting the national average.

The rising cost of cooking gas adds to the financial strain on households already grappling with high inflation and economic challenges.

While the government’s export ban offers hope, further measures may be needed to ensure affordability and wider adoption of LPG as a cleaner energy source.