Cooking Gas Still Too Expensive for FCT Residents Despite Price Decline

The recent decline in the price of cooking gas has offered some relief to residents of the Federal Capital Territory (FCT), but many households say Liquefied Petroleum Gas (LPG) remains beyond their means.

Residents who spoke with the News Agency of Nigeria (NAN) in Abuja on Sunday acknowledged that prices had fallen from the levels recorded earlier in the year but maintained that the commodity was still expensive, particularly for low- and middle-income families.

Across the FCT, a kilogramme of LPG is currently sold for between N1,250 and N1,650, depending on the location and where the product is purchased.

While major gas outlets and depots generally sell at lower rates, some roadside vendors charge considerably more.

Based on the current range, consumers pay between N6,250 and N8,250 for a 5kg cylinder and between N15,625 and N20,625 for a 12.5kg cylinder.

The prices represent a significant moderation from earlier in the year, when LPG sold for close to N2,000 per kilogramme in some parts of the FCT.

In June, the commodity was sold at between N1,498 and N1,650 per kilogramme, while some roadside retailers charged up to N1,850.

However, residents said the government needed to sustain measures aimed at increasing supply and reducing costs before the recent decline could translate into meaningful relief for consumers.

Mr Innocent Emmaunel, a public servant from Gudu, said the lower prices were welcome but remained too high for many families.

“Although the price has come down, it is still expensive for ordinary families. Many people now buy smaller quantities because they cannot afford to fill their cylinders at once,” he said.

Mrs Elizabeth Tanko of Lugbe said consumers needed a lasting reduction rather than temporary price declines.

“We have seen prices come down before, only for them to rise again. What consumers need is a stable price so that we can plan our household expenses,” she said.

A Kubwa-based businesswoman, Mrs Zainab Isiaka, said cooking gas was still adding to the financial burden on households.

“We are happy that the price is no longer around N2,000 per kg like it was some months ago, but even at N1,300 it is still a lot for families that are struggling with food and transportation costs.

“The government needs to do more to bring the price down to a level that ordinary Nigerians can afford,” she said.

Mr Eteka Eyo, a civil servant living in Wuye, called for greater investment in domestic production and improvements in the distribution network.

“If there is enough gas in the country, there should be no reason for the price to remain this high. We need policies that will make the product available and affordable,” he said.

Energy expert Chris Mordi said the recent decline was largely linked to improved availability and easing supply constraints in the downstream market.

“The recent moderation in LPG prices is primarily driven by an improvement in product availability across the downstream market, which has eased supply constraints and reduced pressure on depot prices.

“We are seeing a better alignment between supply and demand, while reductions in depot prices are gradually filtering through the distribution chain.

“Increased competition among LPG suppliers and marketers is also contributing to the downward adjustment in retail prices,” Mordi said.

He noted, however, that consumer prices would continue to be influenced by logistics and transportation costs, distribution margins, exchange rate movements and the sustainability of domestic LPG supply.

“If the current improvement in supply is sustained and there are no major disruptions in the upstream or import-supply chain, the market could experience further price moderation in the near term.

“The key issue is to ensure that increased supply translates into stable and affordable prices for end-users,” he said.

NAN recalls that the Federal Government responded to the earlier surge in cooking gas prices by directing a clampdown on marketers involved in hoarding or diverting LPG.

The directive was issued on June 22 by the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, during an emergency stakeholders’ engagement on the rising cost of LPG.

Ekpo ordered the NMDPRA, other regulators and security agencies to intensify market surveillance, investigate suspected hoarding and diversion, and sanction operators found manipulating the market.

He said the government was committed to boosting domestic LPG supply, reducing dependence on imports and ensuring that locally produced gas was prioritised for domestic consumption.

Ekpo also said the government was considering a local LPG blending initiative involving Nigeria LNG Ltd., domestic producers and the operator of the Port Harcourt plant. The initiative is aimed at reducing logistics costs, improving supply reliability and supporting more stable prices.

The NMDPRA, during the stakeholders’ meeting, identified global supply disruptions and price volatility arising from the Israel-Iran conflict as major contributors to the increase in LPG prices.

It also cited inadequate domestication of local LPG production, low import volumes, non-cost-reflective pricing by some wholesalers and retailers, weak distribution infrastructure and logistics challenges as factors affecting the market.

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