In a surprising twist that left customers dazed, the price of liquified natural gas (LPG) has crashed in Lagos, Abuja and parts of Nigerian cities.
Major LPG depots, surveyed by Legit.ng, disclosed that the price of the commodity crashed following the removal of import duty on accessories by the Nigerian government and the strengthening of the naira.
The current crash has been attributed to import waivers by the Nigerian government and the naira’s resurgence. …CONTINUE READING
“Most of the LPG consumed in Nigeria is imported, hence the need for the government to incentivise importers by introducing waivers on LPG accessories,” policy analyst and Team Lead at Platforms Africa, Adeola Yusuf, stated.
Findings showed that one kilogramme of cooking gas, which sold for N1,050 last week, now sells for N1,000.
It means that a 12.5kg cylinder refill, which costs N13,125, now sells for N12,500, while a 6kg cylinder now sells for N6,000 from N6,300, and a 3kg cylinder sells for N3,000 from N3,150.
John Bamidele, a manager at one of the leading gas plants in Lagos, said that the crash was also due to the naira’s stability.
“The exchange rate is a significant factor in determining the price of LPG in Nigeria. Sixty per cent of LPG consumed in Nigeria is imported. So, the exchange rate is crucial in setting the price.
A stronger naira means cheaper products for Nigerians, not just LPG,” he said.
The naira rebounds, LPG price crashes
The Nigerian currency has remained relatively stable for most of May and June, with volatility at its lowest following the intervention of the Central Bank of Nigeria (CBN) in the FX markets.
The apex bank has injected forex to shield the naira from global shocks, especially following the volatility in the global crude price caused by the Middle East tensions.
On Friday, June 27, 2025, the naira closed positively against the US dollar, trading at N1,535.90 from N1,545.
The move signals a positive development for LPG importers as the CBN tends to fix the import duty rate based on the prevailing foreign exchange.
LPG price crash is a significant achievement
Data from the National Bureau of Statistics (NBS) shows that in April 2025, the average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (LPG), also known as cooking gas, was N7,885.60.
This represents a 7.69% increase compared to the previous month. For a 12.5kg cylinder, the average price in April 2025 was N20,268.06, a 9.82% increase from March 2025.
Also, the average retail price for refilling a 5kg cylinder of LPG increased from N7,322.49 in March 2025 to N7,885.60 in April 2025, a month-on-month increase of 7.69%.
The average retail price for refilling a 12.5kg cylinder of LPG increased from N18,456.24 in March 2025 to N20,268.06 in April 2025, a month-on-month increase of 9.82%.
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