As Nigerians face skyrocketing prices of petrol, the cost of Liquefied Petroleum Gas (LPG), or cooking gas, has surged to N1,500/kg. The increase has raised concerns, with a 12.5kg cylinder now selling for N17,000, up from N12,000 in July, a sharp 41.6% rise in three months.

NIPCO Plc’s Managing Director, Suresh Kumar, attributes the rising costs to Nigeria’s reliance on imported LPG, with over 60% of the gas being sourced from abroad. He expressed optimism that the Dangote refinery and other local refineries would reduce prices by increasing domestic LPG production. Kumar also urged the government to encourage Chevron and other companies to convert more propane into butane, which is better suited for household use.

Despite previous government assurances, the market has yet to see a price reduction. Kumar emphasized that improving local production would shield the market from exchange rate fluctuations and international pricing, helping to stabilize the prices of cooking gas.

He noted that although LPG consumption has grown from 50,000 metric tonnes in 2004 to 1.5 million metric tonnes today, there is still significant untapped potential in Nigeria. With proper investment and policy incentives, local production could meet the growing demand and ease the burden on consumers struggling with the high cost of living.