Price of cooking gas rises by 13.75% in May 2024

The National Bureau of Statistics (NBS), in its Liquified Petroleum Gas (LPG)/Cooking Gas Price Watch, disclosed that the average retail price for a 5 kg cylinder of cooking gas increased month-on-month by 13.75 per cent to N7,418.45 in May 2024 from N6,521.58 in April 2024.

Year-on-year, it rose by 70.12 per cent, from N4,360.69 recorded in May 2023.

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At the state level, Benue, Enugu, and Ondo recorded the highest average prices at N8,012.03, N7,926.21, and N7,857.53, respectively.

Yobe, Jigawa, and Katsina states recorded the lowest average prices at N5,842.31, N6521.81 and N6,567.95 respectively.

The South-East recorded the highest average price, while the North-East recorded the lowest.

The rise in LPG prices is driven by several factors including exchange rate and global gas prices.

However, the significant divergence across states suggests that middlemen’s actions contributed to the high prices.

The increased cost of cooking gas impedes household budgets, especially for low- and middle-income families, and could compel them to embrace traditional fuels such as charcoal and firewood.

This may increase deforestation and the loss of valuable ecosystems and biodiversity.

This will also have an impact on government health spending, given the increased health risks associated with traditional fuels.

To mitigate the impact of forex volatility on the price of LPG, the government should strengthen the local economy and promote local production.

Also, the government should foster competition among the sellers of the cooking gas to ensure that consumers are not exploited through high prices.