How much Nigerians paid for cooking gas at the retail end as of the 10th of August 2021.
In the second week of August, we asked Nigerians via our social media page on Facebook, how much they were buying or selling cooking gas at the retail end. The responses have been interesting and show how prices have moved by at least 15% from July 2021, at the retail side of the business. See summary below;
Where we got responses with multiple prices for a location, we use the average price. Surprisingly, the highest cost for a 12.5kg Cooking gas was N7,500 in Awka and Delta, while the lowest was in Sango Otta at N5,625, other areas with low prices include Abuja and Katsina. The low prices in Katsina may be due to its proximity to Niger where cheaper gas comes from. Cooking Gas price in Lagos is now well above N6,000 as seen in Surulere.
There were no responses from Calabar, Maiduguri, Kano, and Sokoto, just to mention some.
Effect of increased cooking gas prices on the demand in the Nigeria market
The effect of prices on the market has been mixed. A respondent from Jos mentioned that the price increase of cooking gas hasn’t affected sales, while another respondent from Ota mentioned a reduction in sales.
International LPG (cooking gas) price effect on local prices
International LPG prices have risen by about 7% since the beginning of July 2021, from 567 to over 600 USD per Metric ton for Butane. Prices are normally lowest during summer, but this year has shown some abnormal trend in prices. We fear that the price increase may continue into December – Winter season when more gas is required for heating in the temperates; this could lead to a further increase in the price of cooking gas in Nigeria.
Cooking gas prices increase may stop after winter of 2022, except something drastic happens to the demand or some unplanned supply volumes hit the market which is not likely.
We shall continue to share our analysis with you and in the coming months.