The price of Liquefied Petroleum Gas, popularly called cooking gas, has risen sharply to about N1,400 per kilogramme in Nigeria following the ongoing geopolitical tensions in the Middle East.
Market checks revealed that the ex-depot price of LPG climbed by about 13 per cent within a week to N18m per 20 metric tonnes, compared to N15.95m recorded the previous week.
The increase translates to an average retail price of about N1,400 per kilogramme at many outlets, representing a roughly 40 per cent jump from about N1,000 per kilogramme last week.
Industry stakeholders attributed the development to disruptions in global oil production and supply chains linked to the escalating Middle East crisis, which has pushed up petroleum product prices worldwide.
Visits to several gas retail outlets in Lagos indicated that many operators have already adjusted their prices, with cooking gas now selling for as high as N1,400 per kilogramme in several locations.
Confirming the development, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Inyang Edu, said the depot price had increased to about N18m per 20 metric tonnes, while some depots were offering the product at around N19m.
Edu explained that the price spike was largely due to reduced supply in the international market triggered by tensions involving Iraq, Israel and the United States.
He noted that although Nigeria produces part of its LPG requirements locally, including supplies from the Dangote Refinery, domestic pricing remains closely tied to international market trends.
According to him, the product had only recently dropped slightly to N15.95m per 20 metric tonnes from about N16m before the latest geopolitical developments pushed the price upward again.
He added that while some depots currently sell at about N19m per 20 metric tonnes, others still offer slightly lower prices, with some reportedly selling at around N17.5m.
Edu stated that the new depot price has forced gas plant operators across the country to adjust their retail prices, as marketers who previously purchased LPG at lower rates must now reflect the higher cost to sustain their businesses.
He appealed to consumers not to direct their frustrations at gas retailers or plant operators, stressing that the hike is primarily driven by developments in the global energy market and prevailing economic conditions.
While expressing hope that prices could ease once the Middle East crisis is resolved, he cautioned that any reduction in prices may not happen immediately.
On product availability, Edu said LPG supply has remained fairly stable nationwide, although some depots are temporarily awaiting fresh deliveries from incoming vessels.
He further noted that the recent rise in global crude oil prices to about $84 per barrel had prompted the Dangote Refinery to review the prices of petroleum products, including petrol, diesel and cooking gas.
According to him, the ex-depot price of Premium Motor Spirit increased to about N875 per litre from N774.
Edu warned that the development could have wider implications for the domestic economy, potentially pushing up transport fares, food prices and the overall cost of living.
He added that following the removal of fuel subsidy in Nigeria, a return to subsidised fuel pricing may no longer be a practical option, urging the government to closely monitor developments in the global oil market and adopt policies that could cushion the economic impact on citizens.
