Cooking gas hits N1,800/kg as Dangote depot price stays lower

Retail cooking gas prices have climbed to N1,800 per kilogram in Lagos and Ogun states after a fresh increase in depot prices. A 12.5kg cylinder now costs N22,500 to refill at that rate, while a 5kg cylinder costs N9,000.

The retail increase follows a rise in depot costs from N1,100 to as high as N1,445 per kilogram, a jump of N345 or 31.4%. Retailers say higher wholesale costs have left them with little choice but to pass the increase to households.

Depot prices diverge

Most major LPG depots are selling at N1,445 per kilogram. Dangote is offering a significantly lower rate of N1,150 per kilogram, N295 below the price charged by competitors.

The depot prices are: 11 PLC at N1,445 per kg; Dangote at N1,150 per kg; Navgas at N1,445 per kg; Nipco at N1,445 per kg; Rain Oil at N1,445 per kg; and Techno Oil at N1,445 per kg.

The gap means retailers sourcing from different depots face different cost pressures. That could lead to some variation in what consumers pay across Lagos and Ogun, depending on transport costs, depot supply conditions and individual retailer expenses.

Household burden

At N1,800 per kilogram, filling a 12.5kg cylinder costs N22,500. A 5kg cylinder comes to N9,000. For many households, cooking gas is a cleaner and more convenient alternative to firewood, charcoal and kerosene. The latest price movement adds to concerns about essential goods at a time when many Nigerians are already managing tight budgets.

If depot prices remain at current levels, retail costs are unlikely to ease in the near term.

Marketers seek inclusion

The Nigerian Association of Liquefied Petroleum Gas Marketers has urged the federal government to involve its members in the distribution of free cooking gas cylinders and refill initiatives. The association said its distribution network could help the government reach more households, improve cylinder safety and accelerate the adoption of liquefied petroleum gas, commonly known as cooking gas.

The price gap between Dangote and other depots may offer limited relief for retailers who can access its supply. For consumers, the effective cost will still depend on transport and retailer margins in Lagos and Ogun.