A growing scarcity of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has gripped Lagos and several other Nigerian states, causing concerns among consumers and businesses alike. The shortage has led to a significant rise in prices, affecting the daily lives of many Nigerians. The states affected, as reported by our correspondents, include Katsina, Sokoto, Delta, Kaduna, and Kano.
The surge in gas prices began late last month, resulting in a continuous increase in the cost of this essential household commodity. Earlier in October, gas terminal owners raised prices by a staggering 66 percent. For instance, the price of a 20 metric ton (MT) cylinder of cooking gas skyrocketed from N10 million at the beginning of the previous month to N16 million by the end of the month. It is worth noting that the Nigeria Liquefied Natural Gas (NLNG) is currently supplying 20MT of cooking gas to these terminals at a significantly lower price of N9 million.
A market survey conducted over the weekend revealed that a 12.5kg cylinder of cooking gas now sells for between N13,500 and N14,000 on the black market. This steep increase in prices has put pressure on consumers, many of whom rely on LPG for their daily cooking needs.
Furthermore, some traders reported that gas plant owners are selling to them at prices ranging from N1,100 to N1,200 per 1kg due to the limited availability of gas cylinders. This has further exacerbated the problem, making it difficult for traders to access a sufficient quantity of LPG to meet the growing demand.
To put the situation into perspective, as of June, the price of a 12.5kg cylinder was approximately N8,700. By September, the price had risen to N10,200, and as of Saturday, it had surged to between N13,500 and N14,000.
Oladapo Olatunbosun, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, NALPGM expressed his concern, stating that there is currently a shortage of cooking gas in Lagos state. He urged consumers to buy from reputable gas plant owners to avoid additional price hikes caused by the retailers.
The scarcity of cooking gas has not been limited to Lagos alone. Katsina state has also been affected by the shortage. The scarcity was first observed about two weeks ago, and a kilogram of cooking gas now goes for no less than N1,400 in the state, although no official reason has been given for the shortage.
Sokoto State has also experienced a shortage of cooking gas in recent days, leading to indiscriminate price increases.
In Kaduna, residents have been seen carrying their gas cylinders in search of the commodity, with a 5kg cylinder selling for N5,500.
In Kano, the resurfacing of gas scarcity has led to panic buying, with kilogram prices ranging from N850 to N950 in some filling stations.
Delta State has not been spared from this crisis either, with the price of cooking gas reaching N1,100 per kilogram as of November 5, 2023. The commodity was selling for N800 per kilogram in October, leaving consumers baffled by the sudden increase.
The reasons behind this LPG scarcity and subsequent price hikes remain unclear. Meanwhile, an official from the Nigeria Gas Company in Warri declined to comment on the issue due to a lack of authorization.
However, in Abuja and Kwara, reports indicate that consumers are not experiencing the same level of scarcity, although prices remain high.
The LPG scarcity and price increases in these states have undoubtedly created challenges for consumers and businesses. As the government and relevant stakeholders investigate the root causes of this issue, it is crucial to find a sustainable solution that ensures the availability and affordability of cooking gas for all Nigerians.
