Cost of 12.5kg LPG refill declines to N9,537

The average price of a 12.5kg LPG cylinder decreased by 7.61% from N10,323.33 in April to N9,537.89 in May. This is still 9.30% higher than the price in May 2022.

The average price of a 5kg LPG cylinder decreased by 6.07% from N4,642.27 in April to N4,360.69 in May. This is still 11.20% higher than the price in May 2022.

The price decrease for both cylinder sizes was attributed to a decline in the average international LPG price.

The NBS report also highlighted that the average retail price for refilling a 12.5kg LPG cylinder in Lagos was N9,900, while the average price for a 5kg cylinder was N4,500. These prices were higher than the national average prices.

More details

Nigerians in Cross River, Jigawa, and Akwa Ibom states paid the highest costs for 12.5kg LPG refill during the highlighted period. People in Cross River paid N11,083 per refill, meanwhile, those in Jigawa paid N10,975 per refill and people in Akwa Ibom paid N10,174.29 per refill.

However, Nigerians, in Adamawa, Zamfara and Borno paid the lowest costs for 12.5kg LPG refill during the highlighted period. In Adamawa, a 12.5kg refill costs N7,925, it costs N8,128.57 in Zamfara and it costs N8,200.

Also, Bayelsa recorded the highest average price for refilling a 5kg cylinder of cooking gas with N5,016.67, followed by Zamfara with N5,000.00, and Abuja with N4,900.00. Meanwhile, Ondo recorded the lowest price with N3,795.83, followed by Nasarawa and Edo with N3,800.00 and N3,837.14 respectively.

Insights

Nigeria has an LPG availability challenge because local supply does not meet local demand. NLNG had planned to supply 100% LPG, but it has only been able to supply 40%. This means that 60% of LPG is being imported by marketers, which has led to fluctuating prices.

As a result, more Nigerians have switched from using LPG for cooking to firewood or other polluting fuels. For those who continue to use LPG, the situation has led to increased costs.

The CEO of Dairy Hills, Kelvin Emmanuel, said that Nigeria has only two functional LPG landing jetties and not enough bulk storage terminals. He also said that the country needs up to 70,000 to 100,000 metric tons of bulk storage terminals.

According to Emmanuel, the lack of adequate LPG infrastructure in the country will always impact prices. He also pointed out that LPG prices will fluctuate based on locations, which is why the NBS data shows varying prices across states.

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