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Nigerians are facing renewed economic hardship following a severe surge in the price of Liquefied Petroleum Gas – LPG, commonly known as cooking gas. Roadside retailers are currently selling the product for as high as N2,000 per kilogram, while major marketers like NIPCO maintain prices around N1,600 per kilogram.

Frustrated consumers have expressed deep worry and dissatisfaction over the sudden price hike, urgently calling on the Federal Government to intervene and mitigate the biting financial strain on households nationwide.

The Liquefied Petroleum Gas Retailers – LPGAR association has attributed the skyrocketing prices to a mixture of global market pressures and severe local supply challenges. Sourcing difficulties have caused the wholesale price of cooking gas to nearly double, jumping from N900,000 per tonne before the current scarcity to a staggering N1.7 million per tonne. Furthermore, soaring diesel prices have dramatically driven up transportation and distribution costs across the local supply chain, complicating matters for retailers trying to stay afloat.

According to Mr. Promise Ajujumbu, the Public Relations Officer of LPGAR (Nyanya Branch), there are strong industry concerns that top domestic LPG producers may be actively prioritizing lucrative exports over local supply due to better international returns.

Retailers argue that local markets must be adequately saturated before any exports are considered to ensure price stability. However, Louis Ibah, the spokesman for the Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, strongly dismissed these claims, asserting that the government’s ban on LPG exports remains strictly enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority – NMDPRA.

To alleviate the current market deficit, the Ministry of Petroleum Resources stated that marketers have intensified efforts to import additional volumes of LPG to meet the growing domestic demand. Relief is also on the horizon as the new Seplat Gas facility is officially expected to commence local LPG supplies next month in July.

Government officials and industry players remain optimistic that this new facility will significantly boost nationwide product availability and ultimately crash the inflated costs for the everyday consumer.