A survey reveals that the price of liquified petroleum gas (LPG), also known as cooking gas, has plummeted to a four-month low. Dealers of the commodity quoted the product price low, attributing it to various interventions by the Nigerian government.
The Nigerian government removed Value Added Tax (VAT) and import duty on LPG to boost local supplies.
Also, the government began the free distribution of one million unrestrained LPG cylinders nationwide to enhance access. Findings show that dealers across Nigeria have crashed the cooking gas price below N900 per kilogramme for the first time in four months. The first time cooking gas was sold below N800 was early in 2024, when dealers announced a price reduction after it hit N1,300 per kilogramme.
According to dealers, the crash is attributable to the naira’s relative stability in the official market and improved supplies.
A manager at Gasland, one of the major LPG marketers, disclosed that the commodity’s price fell due to government interventions, improved access to forex for import, and the stability of the naira.
“Dealers are now accessing forex relatively easily in the official market, making import easy. Also, the government has removed some bottlenecks such as VAT and import duties.”
The manager, who spoke anonymously, said the government need to sustain its interventions in the sector to ensure that more Nigerians use cooking gas.
“Recently, the government began the distribution of unrestrained gas cylinders to Nigerians to enhance access to LPG use. The action is commendable because no one with a cylinder will leave it idle. “Also, the government needs to provide some interventions to marketers to allow them to import more of the product, which will lead to a price crash,” he said.
