The cost of refilling cooking gas in Nigeria has surged. Households now face significantly higher energy expenses. Prices have climbed to as much as ₦1,180 per kilogram.

Checks at various retail outlets nationwide confirm this trend. Consumers are currently paying almost double what they did just a year ago. Sellers attribute this sharp increase to a combination of inflation, foreign exchange instability, and logistical challenges.

Current Cooking Gas Refill Prices

Here are the latest prices for cooking gas refills:

• 1kg – ₦1,180

• 3kg – ₦3,540

• 5kg – ₦5,900

• 10kg – ₦11,800

• 12kg – ₦14,160

• 12.5kg – ₦14,750

Factors Driving the Rise in Cooking Gas Prices

Several critical factors within the supply chain and broader economic realities influence cooking gas prices. Understanding these helps explain the current high costs.

1. Global LPG Market Costs: Nigeria imports a substantial portion of its Liquefied Petroleum Gas (LPG). When global LPG prices increase, domestic refill costs naturally follow suit.

2. Foreign Exchange Pressure: Importers purchase LPG using dollars. The volatility of the naira against the dollar directly pushes up the landing cost of gas. Limited access to foreign exchange also impacts the volume of LPG entering the Nigerian market.

3. Transportation and Haulage Expenses: Most gas trucks operate on diesel, a fuel whose price has also been unstable. Long distances from coastal import terminals to inland distributors significantly increase delivery charges. Furthermore, frequent road delays due to poor highway conditions add hidden costs to transportation.

4. Taxes and Local Levies: Numerous charges contribute to the final retail price. These include road union fees, state loading fees, depot levies, and various safety compliance costs.

5. Storage and Handling Infrastructure: A lack of adequate storage tanks across many parts of the country means suppliers must undertake costlier and more frequent supply trips. This inefficiency adds to the overall price.

6. Seasonal Demand Peaks: Certain periods experience heightened demand for cooking gas. These include the ‘Ember months’ (September to December), dry season events and ceremonies, and major festival periods like Christmas, Sallah, and the New Year.

7. Security and Logistics Disruptions: In regions affected by insecurity, deliveries often incur higher risk allowances. These additional costs are then factored into the consumer price, increasing prices in such areas.

8. Inflation and Operating Costs: The general rise in inflation affects all aspects of business. Maintenance of cylinders and regulators becomes more expensive. Staff salaries, shop rent, safety equipment, weighing scale certification, and firefighting tools all cost more. These increased operational expenses contribute to higher retail prices.

9. Market Competition and Locality Advantage: Sometimes, local producers or retailers located closer to primary supply sources can offer slightly lower prices. This gives them an advantage over competitors further inland, though this difference may not always be significant.