The Real Reason Cooking Gas Prices Keep Climbing May Surprise Many Nigerians

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Marketers of liquefied petroleum gas, LPG, commonly referred to as cooking gas, have shed more light on the factors behind the persistent rise in prices recorded across Nigeria over the past three weeks.

Speaking in separate interviews with ZINGTIE on Monday, the spokespersons of the Oil and Gas Suppliers Association of Nigeria, NOGASA, and Nigerian Independent Petroleum Company Plc, NIPCO, Chinedu Ukadike and Taofeek Lawal, respectively, attributed the increase to seasonal factors, rising demand, and supply shortages.

ZINGTIE gathered that the cost of cooking gas has increased significantly in Abuja and surrounding areas, with prices now ranging between N1,400 and N2,000 per kilogram, compared to previous rates of N1,000 and N1,200 per kilogram.

The latest development has further compounded the economic challenges facing many Nigerians, who are already grappling with a high cost of living and rising inflation.

The increase has also intensified concerns about the affordability of cooking gas for households, especially at a time when many citizens continue to struggle despite the implementation of the N70,000 minimum wage.

Commenting on the situation, Ukadike linked the upward trend in prices to seasonal demand and supply pressures, while expressing optimism that the market would eventually stabilize as more suppliers enter the sector.

He explained that demand for cooking gas typically rises during the rainy season as many families abandon firewood and other traditional cooking methods.

“It’s because of demand now. You know, it’s the rainy season,” Ukadike said.

According to him, the seasonal shift places additional pressure on available supplies across the country.

“Once it comes to the rainy season, all firewood goes off. It’s seasonal. That’s the way it works,” he stated.

Ukadike further noted that limited supply and the shortage of alternative domestic energy sources have contributed to the current increase in prices.

Despite the situation, he maintained that market dynamics would eventually force prices downward.

“It will come down naturally,” he said.

When asked about the likely timeline for a reduction in prices, Ukadike pointed to the entry of additional operators into the LPG market as a key factor that could improve supply and ease pressure on consumers.

“There are more gas companies that are also trying to come on board. So, I also believe it will come down,” he told ZINGTIE.

He added that increased participation from major industry players, including Dangote Refinery, could help boost supply and ultimately bring down prices.

On his part, Lawal stated that the current price increase is mainly a result of supply falling short of demand.

According to him, the quantity of LPG available in the market is insufficient to meet the needs of the growing number of consumers.

“It is basically a supply issue. There are few products for a large number of customers,” he said.

Lawal stressed that the only sustainable solution to the challenge is a significant improvement in product availability to satisfy rising demand.

“The solution is to improve supply to meet the growing demand,” he told ZINGTIE.

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