The average retail price for refilling a 12.5 kg cooking gas cylinder in Nigeria has reached its lowest point in 11 months, according to data released by the National Bureau of Statistics (NBS). This decline in prices offers a glimmer of hope for consumers grappling with rising living costs.
Data sourced from the NBS reveals that the average retail price dropped by 7.61 percent to N9,537.8 last month, compared to N10,323 in April of this year. On a year-on-year basis, there was an increase of 9.30 percent from N8,726.30 in May 2022. The continuous rise in cooking gas prices had raised concerns about the affordability of essential commodities.
However, this downward trend in prices brings relief to households across the country, providing a respite from the burden of inflation.
Reports indicate that the price of cooking gas has seen a significant reduction, currently standing at N7,000, compared to N10,000 just two months ago.
Folasade Ojo, a resident of Ogijo in Ogun State, expressed her delight over the recent reduction in gas prices. She shared her experience, stating, “When I visited the gas station last week, they told me it was N750 per kilogram for my 12.5kg cylinder. I was thrilled because it means more savings and good news at the stations.” Previously, Folasade had resorted to using a charcoal stove due to the higher gas price of N10,625 in an effort to cut down on consumption. Now, with the lowered price, she can switch back to using gas without worrying about the cost of refilling.
Oreoluwa Owolabi, corporate intelligence Lead at GAS360, explained that cooking gas prices are influenced by the Mont Belvieu Texas price, stating that any changes in their prices have an impact on the local market. Mont Belvieu is home to the largest underground storage facility for liquefied petroleum gas in the United States. The pricing indicator for the U.S. LPG market is primarily driven by the Mont Belvieu market.
Adejo-Ogiri, executive secretary of the Association of Local Distributors of Gas, noted that imported gas prices are declining, and this is reflected in the local market.
According to the U.S. Energy Information Administration, the current price of natural gas has dropped significantly, reaching $2.10 per one million British Thermal Units (BTU) on May 31, 2023, compared to $8.78 per one million BTU previously.
The NBS report also highlights the regional variation in average retail prices for the refilling of a 12.5kg cooking gas cylinder. Cross River recorded the highest average retail price at N11,083, followed by Jigawa at N10,975, and Akwa Ibom at N10,174. On the other hand, Adamawa had the lowest average price at N7,925, followed by Zamfara and Borno with N8,129 and N8,200, respectively.
