The cost of refilling cooking gas in Nigeria has reached a new high. It now stands at ₦1,180 per kilogram. This surge is creating significant challenges for millions of Nigerian households. Many are struggling with the increasing energy costs.

Checks at various retail outlets nationwide confirm this upward trend. Consumers are reportedly paying almost double the price compared to a year ago. Sellers attribute this sharp increase to inflation, foreign exchange pressures, and logistics difficulties.

Current Refill Prices for Cooking Gas

Below is a breakdown of the current cooking gas refill prices across different cylinder sizes:

1kg: ₦1,180
3kg: ₦3,540
5kg: ₦5,900
10kg: ₦11,800
12kg: ₦14,160
12.5kg: ₦14,750

Key Factors Driving Cooking Gas Price Increases

Several crucial factors contribute to the rising cost of cooking gas in Nigeria. These are rooted in both global and local economic realities and supply chain dynamics.

1. Global LPG Market Costs

Nigeria relies heavily on imported Liquefied Petroleum Gas (LPG). Therefore, domestic refill prices often mirror global market fluctuations. When international LPG prices climb, local costs follow suit.

2. Foreign Exchange Pressures

LPG importers purchase the product in US dollars. The volatility of the Naira significantly increases the landing cost of LPG. Additionally, limited access to foreign exchange impacts the overall supply volume entering the market.

3. Transportation and Haulage Challenges

Most gas trucks operate on diesel, which has also seen price increases. Long travel distances, from coastal import terminals to inland distributors, contribute to higher delivery charges. Furthermore, frequent road delays due to poor highway conditions add hidden costs to transportation.

4. Taxes and Local Levies

Multiple charges affect the final retail price. These include fees from road unions, state loading fees, depot levies, and various safety compliance costs.

5. Storage and Handling Infrastructure Deficiencies

Many parts of the country lack adequate storage tank infrastructure. This necessitates more frequent and therefore costlier supply trips to meet demand.

6. Seasonal Demand Peaks

Cooking gas demand typically surges during specific periods. These include the ‘Ember months,’ dry season events, and ceremonies. Major festivals like Christmas, Sallah, and New Year celebrations also drive demand. Increased demand can push prices higher.

7. Security and Logistics Disruptions

Insecurity in certain regions affects delivery logistics. Deliveries to these areas often incur higher risk allowances. These additional costs are then factored into the consumer price.

8. Inflation and Operational Costs

Inflation impacts the entire operational chain. Maintaining cylinders and regulators has become more expensive. Staff salaries, shop rent, and the cost of safety equipment have also risen. Additional expenses contribute to the overall cost. These include weighing scale certification, firefighting tools, and safety surveillance.

9. Market Competition and Locality Advantage

Local producers or retailers situated closer to supply sources may occasionally offer slightly lower prices. This gives them a competitive edge over inland competitors who face higher logistics costs.