Liquefied Petroleum Gas (LPG) commonly referred to as cooking gas, has emerged as a pivotal player in the field of cleaner and more sustainable energy alternatives, effectively replacing conventional fossil fuels such as kerosene. Nigeria, endowed with extensive gas reserves, has witnessed a significant rise and fluctuations in the availability and price of LPG steered by an intricate interplay of multiple factors encompassing governmental policies, market dynamics, infrastructural advancements, and investment environments.
Challenges related to import reliance, taxation, currency devaluation, and limited foreign exchange availability have emerged as substantial contributors to the soaring prices of LPG and these factors have collectively fueled a surge in LPG costs, thereby impacting various areas of daily life.
The consequences of this price surge are far-reaching as many households and businesses have found themselves compelled to adopt alternative cooking methods like firewood, charcoal, and sawdust. However, such alternatives not only contribute to environmental degradation and exacerbate climate change, but also carry severe health implications for users.
Furthermore, the consequences of rising LPG prices extend beyond households, affecting restaurants across the nation. The elevated cost of cooking gas has caused an increase in meal prices or alterations in portion sizes served to customers, illustrating the intricate connection between fuel costs and the broader economy.
Average Price and YoY Changes
The average price of a 5kg LPG in Nigeria decreased by -2.32% year-on-year (YoY) to ₦1,972.33 in 2020, while the average price of 12.5kg decreased by 1.42% YoY to ₦4,139.17.
In 2021, the average price of a 5kg increased by 20.52% YoY to ₦2,377.08, While the average price of 12kg increased by 25.18% YoY to ₦5,181.36.
The average price of 5kg and 12kg in 2022 followed the increasing trend of price from 2021, this time the price of 5kg went up by 75.33% YoY to ₦4,167.65 and the price of 12kg was ₦9,080.46, a 75.25% YoY increase.
As of June 2023, the average price of 5kg had a 7.46% increase to the average of ₦4,478.50 and the price of 12kg increased by 9.72% YoY to ₦9,962.93.
Overall, the price of LPG in Nigeria has been increasing steadly and the largest increase was in 2022, when price rose by approximately 75% YoY.
Price Across All States & FCT
Price Summary By Month & Year
Average Price Across the Federation
The average price dynamics of 5kg LPG exhibited a consistent upward trend throughout the period from 2020 to June 2023. In 2020, the price generally maintained a level below ₦2,000, except for a notable increase in January. However, a significant turning point occurred in July 2021 when the price surged from ₦2,086.69 in June to ₦2,215.33. This surge marked the start of a rapid ascent, continuing until December 2021 when the price peaked at ₦3,594.81 per 5kg. Another substantial price surge was observed in May 2022, which carried forward the trend until April 2023. The highest point thus far was reached in April 2023, with the price hitting ₦4,642.27, before consistently decreasing in May and June to ₦4,360.69 and ₦4,068.26 respectively.
Similar to the trend observed for 5kg LPG, the 12kg LPG prices displayed a consistent and continuous increase from 2020 to June 2023. In 2020, the price remained relatively stable, fluctuating between ₦4,154.28 and ₦4,180.24 throughout the year. However, a major shift transpired in September 2021, with the price surging from ₦4,514.82 in August to ₦6,164.97. This upward trajectory persisted through November 2021, with the cost increasing to ₦7,308.06. Similarly, from February 2022 to April 2023, prices continued their upward trajectory, rising from ₦7,447.79 to ₦10,323.33, after which price consistently decreased in May and June to ₦9,537.89 and ₦9,123.25 respectively.
Price Comparison Across Geopolitical Zone
Price Comparison Across all State & FCT
Year on Year Changes
The YoY changes in both 5kg and 12kg LPG prices from 2020 to June 2023 provides valuable insights into the shifting cost dynamics of LPG. This examination unveils significant trends and fluctuations that define the pricing landscape.
In 2020, there was a consistent trend of price decline across all months YoY compared to 2019 which indicate a general decrease in LPG prices in 2021. Further, the trend of decline continued into January 2021, with a notable YoY drop of -3.47% for 5kg LPG, lowering the price from ₦2,019.10 in 2020 to ₦1,949.02. For the 12kg variant, there was a marginal YoY decrease of -0.06%, reducing the price from ₦4,180.24 in 2020 to ₦4,177.55.
Following these declines, a steady increase in prices ensued, extending until June 2023. During this period, the price of 5kg LPG declined to ₦4,068.26 from ₦4,218.28 in 2022, marking a -3.56% decrease. Similarly, for the 12kg, the price fell to ₦9,123.25 from ₦9,485.91 in 2022, demonstrating a -3.82% decrease.
Month on Month Changes
Throughout the period from 2020 to June 2023, LPG prices experienced consistent fluctuations on a monthly basis. This evolving pattern of change provides crucial insights into the dynamic nature of LPG pricing.
For the 5kg variant, a remarkable shift occurred starting from July 2021, initiating a continuous and substantial increase in price from ₦2,141.59. This upward trend reached its zenith in April, at ₦4,642.27. However, this trend reversed in the subsequent months, with both May and June witnessing declines in price, showing decreases of -6.07% and -6.17%, respectively.
Parallel to the 5kg price movement, the 12kg LPG prices displayed a similar trajectory. Beginning in June 2021, prices consistently escalated across several months, culminating in April 2023 at a price of ₦10,323.33 from an initial price of ₦4,289.05. An exception to this trend was observed in February 2023, which was one of the months when LPG prices experienced a decline together with May and June.