Various factors have been cited by the marketers as reasons for the anticipated shift in retail prices. Notably, Nigeria LNG has been grappling with a 10-month-long supply issue, contributing to the impending price adjustment.
The cost of Liquefied Petroleum Gas (cooking gas) is poised to increase in the upcoming week, potentially placing additional financial strain on households in Nigeria. While recent months have seen a decline in cooking gas prices, this trend is expected to reverse, according to industry experts.
In June, there was a notable decrease in the average retail price for refilling a 5kg cylinder of cooking gas, dropping by 6.71% from N4,360.69 in May 2023 to N4,068.26 in June 2023. Similarly, the average retail price for refilling a 12.5kg cooking gas cylinder also experienced a 4.35% decrease, moving from N9,537.89 in May 2023 to N9,123.25 in June 2023.
This impending shift in prices has been confirmed by Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers.
While specific details regarding the extent of the increase were not provided, Oladapo attributed the upcoming change to rising international prices, increased tax rates, elevated vessel costs, forex scarcity, and naira devaluation.
He said, “It is starting next week because international prices have gone up. The prices of vessels have gone up, and taxes are high, but consumers are not earning more. “Their purchasing power has gone down. Everybody is crying. Consumers, middlemen, and retailers are feeling the impact because business is now on the low side."
Olatunbosun added that while the price increase is unfortunate, it is inevitable. He said “The situation is very unfortunate because prices are going higher. Nigerian consumers are passing through very difficult times because they can no longer afford gas."
Nigeria LNG’s force majeure continues after 10 months In another development, Nigeria LNG (NLNG) has said that the force majeure it declared in October 2022 due to widespread flooding that disrupted supply will continue.
