Exclusive: Price of refilling 5kg of Cooking Gas dropped by 6.1% in June

The National Bureau of Statistics (NBS) has reported in its Liquified Petroleum Gas (LPG)/Cooking Gas Price Watch that the average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) decreased by 6.10% from N7,418.45 in May 2024 to N6,966.03 in June 2024.

In contrast, there was a significant year-on-year increase of 71.23% in cooking gas, compared to N4,068.26 in June 2023. A zonal analysis indicated that the South-West region recorded the highest average retail price of cooking gas for a 5kg cylinder at N7,241.67, followed closely by the North-Central region at N7,096.51, while the North-West had the lowest price at N6,660.20.

At the state level, Osun had the highest average price of cooking gas at N7,800.00, followed by Edo at N7,750.00 and Ebonyi at N7,590.79. Conversely, Yobe reported the lowest price of cooking gas at N6,062.50, with Jigawa at N6,144.44 and Anambra at N6,338.75. The month-on-month price decline can be attributed to the federal government’s ban on the export of cooking gas, which has increased the supply in the domestic market.

However, the year-on-year price increase of cooking gas highlights the challenges of low production levels that fail to meet both domestic and international demand, compounded by inflationary pressures stemming from various factors such as elevated transportation costs and currency depreciation. While the ban has led to a reduction in prices of cooking gas, the government should explore further strategies to enhance production for both domestic consumption and export markets.

It is essential to regard the ban as a temporary measure; otherwise, it may deter potential investors interested in export opportunities, particularly given the rising global demand for renewable energy sources, including LNG in the automotive sector. SOURCE: CSEA AFRICA