The price of cooking gas has experienced a significant decline across Nigeria, dropping by approximately 39% in recent weeks. This reduction has brought the price down to between N1,100 and N1,650 per kilogramme, offering much-needed relief to households grappling with the rising costs of food and energy.

The decrease follows an increase in the supply of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. Prices had soared to as high as N2,300 per kilogramme in June, causing many families to either cut back on their gas usage or switch to alternative cooking fuels. However, improved supply levels have allowed prices to fall significantly, with current rates in cities like Lagos and Ibadan now between N1,100 and N1,350 per kilogramme.

This price drop comes on the heels of federal government interventions aimed at extending the national availability of LPG. The domestic supply of cooking gas has reportedly increased, rising from 4,262 metric tonnes in May to 5,040 metric tonnes in June. Such measures have effectively extended the availability of LPG from 11 days to 22 days, a crucial improvement for consumers.

Despite the positive news, industry stakeholders caution that maintaining these lower prices will require ongoing investment and coordinated efforts between the government and industry players. Adeleye Falade, Managing Director of Nigeria LNG Limited (NLNG), emphasized the need for collaboration to ensure that cooking gas remains affordable and accessible. He highlighted the importance of improving storage and distribution infrastructure as well as addressing the multiple taxes and regulatory charges that currently burden the LPG sector.

While retail prices have decreased, there are emerging concerns regarding rising depot prices in Lagos. Reports indicate that some operators have begun adjusting their rates, with depot prices increasing amid worries over fluctuating international crude oil prices. For instance, AYM Shafa has been selling LPG at about N1,050 per kilogramme, while Ardova Plc is listed at N975. Such changes at the wholesale level could eventually affect retail prices, impacting consumers directly.

In Abuja, residents are already facing challenges with cooking gas prices reaching N1,650 per kilogramme, driven by similar pressures from global oil price increases. As households continue to feel the pinch from rising living costs, the urgency for government intervention becomes increasingly apparent, leaving many to question how long this relief from lower prices will last.

The recent price drop in cooking gas offers a glimmer of hope for many Nigerian families, but the situation remains precarious as the market adjusts to various external pressures. The coming weeks will be crucial in determining whether these price reductions can be sustained or if consumers will once again face escalating costs.