Key Points
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Cooking gas price decline reduces inflationary pressure on Nigerian households.
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NBS credits improved LNG supply and terminal distribution for decline.
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Analysts warn volatility could persist with Nigeria’s weakening currency naira.
The National Bureau of Statistics (NBS) says that the average price of a 12.5-kilogram cylinder of cooking gas in Nigeria fell by 21.42 percent in August to 16,195.07. The drop gives some relief to families who are having trouble with inflation, which has been above 29 percent, the highest level in almost 30 years.
The NBS, which is headed by Statistician-General Adeyemi Adeniran, put out the information in its Liquefied Petroleum Gas (LPG) Price Watch.
The average for August was much lower than July’s 20,612.26. Analysts say this is because there was better supply at ports and international gas benchmarks fell for a short time.
Prices for cooking gas go down in most states
The bureau’s report shows that prices are different in different parts of the country. Ogun State had the lowest average at ₦14,800, and Rivers State had the highest at ₦17,700. In Lagos, Nigeria’s business centre where people buy a lot, the average dropped to ₦15,600. Prices also went down in Kano and Kaduna, two northern cities where families depend on petrol a lot because kerosene prices are going up.
The bureau noted that there was a year-on-year increase compared to August 2023, even though there was a monthly decline. This shows that structural cost pressures are still there. The market is still affected by inflation, high shipping costs, and a weak naira.
Adeniran says that the drop in the price of cooking gas was helped by more domestic supply from terminals run by Nigeria LNG Limited and private depots in Lagos and Port Harcourt. He also said that more ships coming into the Apapa and Onne ports made the market more available.
But there is still a chance that the exchange rate will change. This year, the naira has lost more than 40% of its value, which has made it more expensive for distributors like 11 Plc Gas, Techno Oil, and Ardova Plc to buy things. These companies still have to pay in dollars.
Prices of cooking gas affect household budgets
The price of LPG directly affects the budgets of millions of families. Consumer groups like the Nigeria Consumers Protection Network were happy about the drop in August, but they also warned that low-income people are at risk when prices are unstable.
Kunle Olubiyo, the president of the network, said, “The drop in the price of cooking gas is good, but the question is how long it will last.” He told the government to speed up investments in local refining and build more storage and distribution facilities.
Energy experts say that any price drop may only be temporary unless Nigeria boosts its domestic production and stabilises its currency. The drop in August is a rare break from a year of constant inflation.
