Residents of the Federal Capital Territory (FCT) have continued to complain about the high cost of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, despite a recent reduction in its price.
Some residents who spoke in Abuja on Sunday said that although the commodity was no longer as expensive as it was earlier in the year, its current price remained beyond the reach of many low- and middle-income households.
Across the FCT, a kilogramme of cooking gas currently sells for between N1,250 and N1,650, depending on the location and point of purchase.
While major gas outlets and depots tend to offer relatively lower prices, some roadside vendors sell the product at higher rates.
At the prevailing prices, consumers now pay between N6,250 and N8,250 to fill a 5kg cylinder, while a 12.5kg cylinder costs between N15,625 and N20,625.
The latest figures represent a significant improvement from earlier in the year when the price of cooking gas climbed to almost N2,000 per kilogramme in some parts of the FCT.
In June, LPG sold for between N1,498 and N1,650 per kilogramme, while some roadside sellers charged as much as N1,850 per kilogramme.
Despite the recent moderation, residents called for additional measures by the government and industry operators to further reduce the cost of LPG and make it more accessible to households.
Mr Innocent Emmaunel, a public servant and resident of Gudu, welcomed the price reduction but said it had not substantially eased the financial burden on 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, a resident of Lugbe, said consumers needed a sustained reduction rather than temporary price cuts.
“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 businesswoman residing in Kubwa, Mrs Zainab Isiaka, said the cost of LPG continued to put pressure on household finances.
“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.
Similarly, Mr Eteka Eyo, a civil servant and resident of Wuye, urged the government to sustain measures aimed at boosting domestic production and strengthening 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.
An energy expert, Mr Chris Mordi, linked the recent decline in LPG prices mainly to improved availability of the product and a reduction in supply constraints within 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, however, noted that the extent of the benefit to consumers would depend on several factors, including transportation and logistics expenses, distribution margins, movements in the exchange rate and the continued availability of domestically produced LPG.
“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.
The Federal Government had earlier responded to the surge in LPG prices by directing a crackdown on marketers involved in the alleged hoarding and diversion of the product.
The directive was issued on June 22 by the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, during an emergency meeting with key stakeholders in the LPG sector.
The meeting brought together regulators, producers, marketers and other industry participants to address the rising cost of cooking gas.
Ekpo instructed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), relevant regulatory bodies and security agencies to strengthen surveillance of the market, probe cases of hoarding and diversion, and sanction operators found to be manipulating prices.
He said the Federal Government was committed to expanding domestic LPG supply, reducing dependence on imports and ensuring that locally produced gas was channelled towards meeting domestic demand.
The minister also disclosed that the government was considering a local LPG blending initiative involving Nigeria LNG Ltd., domestic producers and the operator of the Port Harcourt plant.
According to him, the initiative is expected to reduce logistics expenses, enhance supply reliability and promote greater price stability.
At the stakeholders’ meeting, the NMDPRA identified disruptions in global supply and price volatility linked to the Israel-Iran conflict as some of the factors contributing to the rise in LPG prices.
The regulator also cited inadequate domestic utilisation of locally produced LPG, low import volumes, pricing practices by some wholesalers and retailers, weak distribution infrastructure and logistics difficulties as other factors affecting the market.
For many FCT residents, however, the priority remains a further reduction in LPG prices and greater stability in the market to enable households to affordably maintain the use of cooking gas.
