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HomeBusinessPrices of LPG rise 14% as Nigeria feels impact of Russia-Ukraine war

Prices of LPG rise 14% as Nigeria feels impact of Russia-Ukraine war

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The fall out from the Russia invasion of Ukraine is gradually impacting on Nigeria’s energy sector as the price of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas jumped by 14 percent in the last two weeks.

To refill a 12.5 kg cooking gas cylinder, consumers have to pay as much as N8,750 against N7,500 paid earlier in the month.

For instance, in parts of northern Nigeria, Southeast and South-South, the price has risen to N9,000 and N9,500 from N8,000 and N8,500 to refill 12.5 kg cooking gas cylinder.

The situation is forcing many Nigerian households, businesses to search for alternative fuel for cooking.

According to statistics obtained from the Nigeria LPGas market Report, the Nigerian LPGas market consumption volume continued its declining trend in February, 2022.

At the end of February 2022, the Year to Date, YTD volume recorded was 163 Kilotonnes, kT, a reduction of 19 per cent from the previous year’s.

The Vice President, Nigeria LPG Association, NLPGA, Felix Ekundayo, attributed the rising cost of cooking gas to the development in Russia and Ukraine.

“We have seen the energy crisis in the country, along with the rise in commodity prices, some of which have to do with what is happening in Ukraine and Russia.

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“Diesel cost has escalated, and gas is been delivered with truck which requires diesel for movement there is no way it will not affect the price.  At the moment, we are not sure of the outcome in Russia-Ukraine, but we are watching the space.”

Meanwhile, the Liquefied Petroleum Gas Retailers (LPGAR), branch of National Union of Petroleum and Natural Gas Workers, NUPENG, has frowned at the increment of cooking gas price across the country.

In a statement signed by the National Chairman, LPGAR, Michael Umudu, the group stated:  “Prices at the depots have similarly risen to about N11 million for 20 metric tonnes from N10 million and less sold about two weeks ago.

“The worrisome aspect of this development is that it has continued to rise on daily basis for weeks now but began to escalate in the last one week leading to significant increases in both depots and retail outlets.”

“A similar price rise had occurred in 2021 leading to the sale of 12.5kg gas cylinder up to N10,000 in late November and early December 2021, amidst supply shortages.

“The union, therefore, expects the government to come up with clear policy direction for the development of LPG in the country to forestall the ugly situation.“

“LPG as a clean energy has steadily been embraced by low income earning Nigerians in the last seven years against previous years when it was seen as the preserve of the rich.“

“The branch union considers as an irony that such price rises are happening at the time when government is, through policy statements, assuring Nigerians of adequate supply of the product at affordable prices.”

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