Price of cooking gas in Nigeria jumps to highest in over 2 years – NBS

The average cost of purchasing a 12.5kg cylinder of household cooking gas in Nigeria spiked by 7.16% year-on-year in July 2021 to N4,422.32. This is according to data released by the National Bureau of Statistics (NBS).

According to the report, the cost of a 12.5kg cylinder of household cooking averaged at N4,422.32 across the 36 states and the federal capital territory in July 2021. This represents a 3.11% increase compared to N4,289.05 recorded in the previous month.

A cursory look at the data shows that the price increased to its highest level in over two years. Specifically, a 12.5kg cylinder of household cooking gas increased to its highest since November 2018.

Similarly, a 5kg cylinder of cooking gas sold for an average of N2,141.59, indicating a year-on-year increased of 8.64% compared to N1,971.34 recorded in the corresponding month of 2020, while it increased by 3.52% compared to N2,068.69 recorded in the previous month.

Investment One
Cooking gas is a component of the consumer price index, which increased by 17.38% year-on-year in July 2021, a slight reduction compared to 17.75% recorded in the previous month.

States with the highest increases in cooking gas prices
The federal capital, Abuja recorded the highest increase in the price of 12.5kg cylinder of cooking gas with a 30.41% year-on-year increase in price. Kano State followed with 25.68% increase, Kwara (25.23%), Imo State (24.28%), and Rivers State with 19.86%.

On the flip side, Ondo State recorded a 3.24% decrease in the price of the commodity, followed by Zamfara State with 2.62% decrease, Anambra State (-2.52%), Bayelsa (-1.44%), and Jigawa State with 1.25% decrease in price.

In terms of states with the highest price, Abuja took the lead at N5,060 for a 12.5kg cylinder of cooking gas, closely followed by Gombe State (N5,000), Kogi (N4,985), Rivers (N4,953), and Kwara State (N4,950).

Meanwhile, Kaduna State sells the lowest at N3,718, followed by Zamfara State at N3,725, Oyo (N3,859), Katsina (N3,872), and Ondo State at N3,958.

The curious case of Lagos state and other major cities
Nairametrics reported in July, that the cost of filling a 12.5kg cylinder of cooking gas surged to about N6,200 in some gas stations in Lagos state and other major cities in Nigeria. This is a sharp variance compared to the figures reported by the National Bureau of Statistics (NBS). However, an explanation could be the fact that the latest figures released by the NBS are averages rather than specific figures.

Meanwhile, the National Chairman of Liquefied Petroleum Gas Retailers Branch of NUPENG, Mr Chika Umudu, explained that the price hike was due to the country’s high dependence on the importation of LPG.

“As the dollar is appreciating against the naira, the price of LPG is increasing,” he said,

According to him, the Nigerian LNG Limited, which accounts for more than 40% of the LPG supply volumes in the country, should be supplying the domestic market in accordance with the demand, rather than having a fixed quantity per annum.

What this means
The latest data released by the statistics body shows that Nigerians spent more on purchasing household cooking gas in the month of July 2021, compared to previous months.