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Cooking gas price hits N1,500 per kg

Nigerians are facing a challenge with the rising cost of petrol as the price of Liquefied Petroleum Gas has surged to N1,500 per kilogram.

Suresh Kumar, the Managing Director of NIPCO Plc, is hopeful that the upcoming Dangote refinery and other local refineries could potentially bring down the prices of cooking gas. Currently, more than 60% of LPG used in Nigeria is imported.

Recent assessments have shown that retail prices have hit N1,500/kg in Lagos and Ogun states. In Abuja, the cost of refilling a 12.5kg cylinder now averages N17,000, which is a 41.6% increase from N12,000 in July. The ongoing price hikes are creating difficulties for households that rely on LPG for cooking.

The Minister of State for Petroleum Resources, Ekperikpe Ekpo, had previously pledged to take steps to reduce LPG costs, but recent surveys indicate that prices are still on the rise. In Lokogoma, a cylinder now costs N17,000, while in Kubwa, prices vary between N16,200 and N16,500.

Kumar emphasized that local production is not sufficient and urged the government to encourage companies like Chevron to increase propane conversion for domestic use. Currently, only 40% of Nigeria’s LPG consumption is produced locally, and Kumar believes that boosting domestic production could help stabilize prices by reducing reliance on imports.

He stressed the importance of making greater investments in gas infrastructure and called on the government to support local refineries to increase LPG output, making the commodity more accessible to the Nigerian population. Despite the recent price increases, Kumar remains optimistic for a market correction as more companies enter the gas processing sector.

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