Prices of liquefied petroleum gas (LPG), commonly known as cooking gas, have dropped in Nigeria after weeks of sharp increases, retailers said, as supply from refineries and depots improves.
Retailers said the average price of cooking gas fell to between ₦1,300 and ₦1,500 per kilogramme over the weekend, compared with about ₦2,000 per kilogramme three weeks ago.
The product is gradually circulating, and there is an increase in supply. The price is dropping but not yet back to the former level. It is now between ₦1,300 and ₦1,600, depending on the location.
The market remains unstable but could normalise within a week if supplies continue. The market is not yet stable, but there is considerable improvement. Hopefully, stability will be attained in another week if the supply is sustained.
Consumers across several Nigerian cities confirmed that retail outlets had reduced prices but expressed hope that the price would fall further to ₦900 per kilogramme or less.
Cooking gas prices doubled in recent weeks after the Petroleum and Natural Gas Senior Staff Association of Nigeria went on strike amid a dispute with the Dangote refinery, disrupting supplies. Although the strike has been suspended, prices remained high until recently.
The Minister of State for Petroleum Resources (Gas) last week warned marketers against hoarding or exploiting consumers, saying the government would act to stabilise the market.
Distributors have accused off-takers of inflating prices between the refinery and retailers. The Dangote refinery reportedly sold LPG at ₦15.8 million per 20,000 metric tonnes to major distributors, who in turn resold between ₦18.4 million and ₦18.5 million.
Sources at the refinery said marketers buy LPG at ₦715,000 per metric tonne (about ₦715 per kilogramme), denying responsibility for retail price fluctuations. They said they do not control retail prices, noting that only the government can fix prices under the Petroleum Industry Act.
Earlier, the Nigerian Association of Liquefied Petroleum Gas Marketers blamed retailers for the recent price surge, but the retailers’ association dismissed the claim as unfair and misguided.
