Since June 2023, the price of Liquefied Petroleum Gas (LPG) in Nigeria has surged by over 114%, climbing from N700/kg to N1,500/kg by October 2024. The hike is closely tied to the naira’s sharp devaluation following President Bola Tinubu’s economic policies, including the currency’s floating and subsidy removals. With over 60% of Nigeria’s LPG imported and priced in dollars, the fluctuating exchange rate has significantly impacted domestic prices. Industry leaders warn that the country’s reliance on imports, coupled with insufficient local production, may drive prices even higher.
At the 2024 National Conference of the Nigerian Association of LPG Marketers, experts urged the Federal Government to promote increased local production by encouraging firms like Chevron to convert more propane into butane for domestic use. The National Bureau of Statistics (NBS) also reported steep year-on-year price hikes for refilling LPG cylinders, with average prices rising by nearly 60% for a 5kg cylinder and over 76% for a 12.5kg cylinder. The highest prices were recorded in Rivers and Gombe states, further burdening households already grappling with economic hardships.
As LPG prices continue to soar, many Nigerians are reverting to traditional cooking methods, such as firewood and charcoal, raising concerns about environmental degradation and health risks. Experts warn that the price hikes could derail Nigeria’s clean cooking initiatives, which aim to reduce reliance on firewood and charcoal. With an estimated 500,000 African women dying prematurely each year due to smoke inhalation from unsafe cooking methods, the rising cost of clean energy threatens to exacerbate health and environmental challenges across the country.
