The ongoing crisis in the Middle East has triggered a sharp increase in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, across Nigeria.
Industry data shows that the ex-depot price of LPG has risen by about 13 per cent week-on-week, climbing to N18 million per 20 metric tonnes (MT) from N15.95 million recorded last week. In some depots, the price has reportedly reached as high as N19 million per 20MT.
This increase has translated to a retail price of approximately N1,400 per kilogramme, representing a 40 per cent surge from the N1,000 per kilogramme consumers paid just a week earlier.
The development follows disruptions in global oil production and supply caused by escalating tensions involving Iraq, Israel and the United States. The instability in the international market has placed pressure on petroleum product prices worldwide, including LPG.
A visit to several gas plants in Lagos confirmed the increase, with many outlets now selling cooking gas at around N1,400 per kilogramme.
Speaking on the situation, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Inyang Edu, confirmed the rise in depot prices and attributed it to the global supply challenges triggered by the Middle East crisis.
According to him, although Nigeria produces some LPG locally, including supplies from the Dangote Refinery, domestic prices are still influenced by international market trends since crude oil and related products are traded globally in dollars.
He explained that while prices had dropped slightly last week to N15.95 million per 20MT from N16 million, the renewed geopolitical tensions quickly reversed the trend, pushing prices to N18 million and above in some depots.
Edu also noted that marketers who purchased products at the higher depot prices are compelled to increase retail prices in order to remain in business. He therefore urged consumers and retailers not to direct their frustration at gas plant operators.
On supply, he said availability remains relatively stable nationwide, although some depots are temporarily out of stock as they await incoming shipments.
He further warned that the surge in global crude oil prices, which recently climbed to about $84 per barrel, could have wider economic implications, including higher transportation costs and rising food prices.
