Cooking gas scarcity bites harder in Lagos
Tag: Cooking Gas
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Supply disruption pushes up cooking gas price
The price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, has surged sharply across Lagos and other parts of the country, forcing households and small businesses to adjust their budgets and consumption patterns.
Checks by The Nation showed that the retail price of LPG has risen from about N1,000 per kilogram to N1,500 in the last few days following the industrial action embarked upon by members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against Dangote Refinery.
At several gas plants visited across Lagos, including Ajuwon, Magodo, and Iju-Ishaga, long queues of anxious consumers were seen waiting under the sun to refill their cylinders.
Many lamented that the sudden jump in price had worsened the cost-of-living pressure already weighing heavily on households.
At the Amego gas retail plant along Ajuwon-Akute road, Mrs. Grace Ajayi, who came to refill her 3-kilogram cylinder, expressed frustration.
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“This small cylinder that I used to fill for N3,000 is now N4,500. I am a trader, and I cook twice a day for my children. If this continues, I will go back to charcoal. It is stressful but at least it is cheaper,” she said, clutching her cylinder.
Beside her, another resident, Anthony Igwe, who uses a 5-kilogram cylinder, said the hike has forced him to ration cooking time.
“I am now calculating everything I put on the fire. I told my wife we can’t boil water to bathe anymore to save gas.”
At the Second Coming Gas Plant in Magodo, The Nation observed a wave of panic buying.
Residents were seen rushing to fill multiple cylinders at once, with some loading two or more 12.5-kilogram cylinders in their car boots.
The attendant on duty said the rush started two days ago when news spread that depot prices had jumped sharply due to supply disruption.
Operators in the LPG market confirmed that the industrial action has disrupted supply lines from the refinery, forcing marketers to depend on limited stock and imports at higher rates.
A Lagos gas dealer, Mr. Kola Ogunleye, said the sudden shortage and panic buying have further driven up prices.
“The strike affected loading and distribution for some days, and by the time supply resumed, depot prices had already gone up.
“Everyone down the chain is adjusting, and that’s what consumers are seeing now,” he explained.
Consumer protection advocates warn that the situation could worsen unless the federal government intervenes to stabilise supply and enforce fair pricing. Economists note that the hike in cooking gas prices could heighten inflationary pressure, as food vendors and households depend heavily on LPG for daily cooking.
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Cooking gas marketers, stakeholders to brainstorm in Lagos
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) is set to host its 2025 National LPG Conference and Exhibition in Lagos.
According to the Executive Secretary of NALPGAM, Mr. Bassey Essien, this year’s event will be held between September 24th and 25th, 2025 at the Balmoral Convention Centre, Sheraton Hotel, Ikeja, Lagos.
The event is designed to be knowledge-driven, impactful, and serves as a catalyst for innovation, collaboration, and strategic foresight.
Themed, ‘Navigating the Future of LPG: Challenges, Opportunities, and Collaborations,’ the two-day event, Essien stated is more than a conference, “It is a convergence of minds, missions, and momentum.”
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He noted that the event is designed to create meaningful avenues for exploring the future of LPG, addressing pressing industry challenges, and unlocking new opportunities and potentials.
“This vision reflects a deep understanding of the sector’s evolving landscape and the need for proactive engagement across all levels of the value chain. At its core, the conference aims to tackle the dual imperatives of sustainability and growth.
“As global energy systems shift toward cleaner alternatives, LPG finds itself at a crossroads—valued for its relatively low emissions and versatility, yet challenged by infrastructure gaps, regulatory hurdles, and market volatility. Through keynote speeches, panel discussions, and exhibitions, participants will delve into these complexities, seeking actionable solutions that balance environmental stewardship with economic viability.
“The conference tends to offer a rare and valuable platform for high-level networking bringing together delegates and non-delegates, speakers, exhibitors, and distinguished guests from across the LPG ecosystem.
“This cross-pollination of ideas and experiences is expected to foster partnerships that transcend borders and disciplines, paving the way for collaborative ventures and shared success.”
For industry leaders, policymakers, entrepreneurs, and innovators, the NALPGAM conference is not just an event, the organisers explained, “it is an invitation to shape the future. It is a space where vision meets strategy, where challenges become opportunities, and where the collective wisdom of the sector can be harnessed to drive meaningful change.
“As Nigeria continues to assert its role in the global energy dialogue, this conference stands as a testament to the power of convening, the importance of foresight, and the enduring relevance of LPG in a rapidly changing world. The future is not something to wait for, it is something to navigate. And NALPGAM is charting the course”, he stated.
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Fed Govt stops export of cooking gas to crash price
The Federal Government has announced the stoppage of the export of locally produced Liquefied Petroleum Gas (LPG) also known as cooking gas. The measure is to mitigate the price of the gas that has been soaring steadily.
Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said “Short Term Solution: With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost reflective prices.”
This was contained in a press statement which the spokesman to the minister, Louis Iba issued.
In terms of the pricing framework, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to meet with stakeholders in order to derive the pricing framework within 90 days.
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The statement said: “Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.”
Proffering a long term solution, the statement added that within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.
The statement noted that the minister expressed deep concern over the continuous increase in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in the country.
Recall that in a bold move to tackle the soaring price of cooking gas, the Gas Minister had established a high-level committee in November 2023, led by the Authority Chief Executive of the NMDPRA, Farouk Ahmed and comprising key stakeholders in the LPG value chain.
However, despite this effort to address the issue, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100 – N1,250 per kg.
“The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike,” the Minister said.
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VAT on diesel, CNG, cooking gas gone
• Edun: small businesses won’t pay tax from Jan 1
A new tax regime that will minimise the cost of doing business, improve cost of living and promote cleaner energy has been unveiled by the Federal Government.
Value Added Tax (VAT) on cooking gas, diesel, Compressed Natural Gas (CNG) and electric vehicles, among others, have been removed.
Small businesses will also, beginning from January, be exempted from paying taxes to boost income and employment generation.
Presidential aide Dada Olusegun yesterday on his verified X handle @DOlusegun, posted: “As part of efforts to reduce the cost of living, enhance energy security, and speed up Nigeria’s shift to cleaner energy sources, the President Tinubu-led administration has removed VAT on the following: Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, Clean Cooking Equipment.”
He added that in order to incentivize the energy sector and reverse its long-time investment drought, the government introduced tax reliefs for deep offshore oil and gas projects.
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Olusegun, quoting Minister of Finance Olawale Edun, said the decision is meant to attract global investments to the country’s deep offshore projects.
The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs, fulfilling President Tinubu’s campaign promise.
Olusegun quoted the Coordinating Minister of the Economy as saying: “The Notice of Tax Incentives for Deep Offshore Oil and Gas Production introduces new tax reliefs to attract global investments to Nigeria’s deep offshore projects.
“A reminder that the President, during his campaign, promised to incentivize investors who were divesting away from the country to favorable nations like Guyana and Angola.
“Increased oil production, among other benefits of these reforms, are expected to improve the earnings of the administration in order to implement its programs successfully.”
Small businesses get tax relief
In the new regulations, small businesses with annual turnover of not more that N2 million will from January 1 no longer pay taxes.
They must, however, possess Valid Tax Identification Number (TIN) to qualify for the relief.
A Finance Ministry source added that the regulation is designed to foster an environment where small businesses and manufacturers can benefit from tax exemptions, especially in sectors with low profit margins.
He stated that tax deducted at source would henceforth, not be regarded as an additional cost or separate tax but treated as an advance payment towards the final tax liability of the supplier.
This approach, according to him, is meant to ease the burden on businesses and ensure compliance without adding unnecessary financial strain.
Under the rules, failure to remit deducted taxes or to deduct tax at source will attract significant penalties. The penalty structure aligns with existing legislation under the Federal Inland Revenue Service (Establishment) Act and the Personal Income Tax Act.
The Federal Inland Revenue Service (FIRS) is expected to issue further guidelines to ensure their smooth implementation.
The measures are contained in ‘’Deduction of Tax at Source (Withholding) Regulations, 2024’’ signed by the Finance minister.
Edun said in a statement that the goals of the new tax measures include streamlining “the deduction of taxes at source from payments to taxable persons, reduce complexities, and promote ease of compliance for businesses.”
He added that the measures ‘’cover payments made under the Capital Gains Tax Act, Companies Income Tax Act, Petroleum Profits Tax Act, and the Personal Income Tax Act. Among its objectives are promoting global best practices, reducing tax evasion, and curbing arbitrage between corporate and non-corporate structures.’’
“The objectives of these Regulations are to (a) set out the rules for the deduction of tax at source from payments to taxable persons under the Capital Gains Tax Act, the Companies Income Tax Act, the Petroleum Profits Tax Act, and the Personal Income Tax Act regarding specified transactions, ” the minister added.
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Firm offers 30% reduction on cooking gas
An Enugu-based Liquefied Petroleum Gas (LPG) marketing company, Second Coming Nigeria Ltd, has offered 30 per cent reduction in cooking gas to over 4,000 residents of Enugu state to celebrate Governor Peter Mbah’s one-year in office.
The company cut the prices of cooking gas from N960 to N672, which amounts to over N20 million subsidy, for 4,000 residents coming with their 12kg gas cylinders patronizing its four branches scattered within the state.
Declaring the reduction of prices of cooking gas open at the company’s plant on yesterday in Abakpa-Nike, along Enugu-Nsukka Road, Governor Peter Mbah said that the gesture by Second Coming Nigeria Ltd was a testament of the striving business environment in Enugu state.
In a statement made available to The Nation, Mbah, represented by the state’s Commissioner for Information and Communication, Aka Eze Aka, said that the current administration had de-risked business environment and improved in all indices of Ease-of-Doing-Business in the state.
“Security for both investors and customers have been achieved as the state rank as one of the safest states in the country; where everybody move around and engage in their business endeavours freely not minding the hour.
“As a governor that understand business and its nature, having been a businessman himself, have gone ahead to remove all bottlenecks to business as well as invested massively in road, water, electricity and other infrastructure for business to flourish in the state.
“This administration is doing things differently as it carries a big vision to move the state forward in all sectors and ensure that the total Gross Domestic Product (GDP) is grown from the current $4.4 billion to $30 billion within eight years,” he said.
Collaborating, the Commissioner for Special Duties, Sunday Ajogwu, lauded the company for celebrating the modest achievements of the governor in the last one year as well as joining to herald the innovations and productivity been driven by Mbah’s administration.
“We thank Second Coming for this sound Corporate Social Responsibility (CSR), which entails giving back and joining Gov. Mbah to put smiles in the faces of thousands of residents in the state.
“We want more companies and investors to come in and take advantage of the progressive business environment and peace-loving people that Enugu State is blessed with courtesy of our amiable governor, Dr Peter Mbah,” he said.
Speaking, the Chief Executive Officer (CEO) of the company, Dr. Basil Ogbuanu, said that the gesture was for two celebrations, adding: “We are celebrating our result-oriented and hardworking governor, Dr Peter Mbah and celebrating our customers for standing with us.”
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Ogbuanu said that Gov. Mbah, being a renowned oil and gas businessman before venturing into politics, had made those in the oil and gas sector proud with “his sterling performance, innovative ideas and passionate drive to achieve them. He also appreciated the customers of the company for their loyalty and ensuring faithful patronage in years past.
One of the beneficiaries of the 30 per cent subsidy, Anthony Nnaemezie, commended the company for such a wonder gesture coming at a time of economic difficult in many homes.
“I call on all companies and businesses to also join the state government in the bid to make life easier for residents as this company is doing here today,” Nnaemezie said.
Another beneficiary, Maria Ndubisi, thanked the management of the company for such a kind gesture; while praying for God’s blessings on the company to continue to witness progress. “I want to sincerely thank the company as it is not common to see such free gestures these days. I pray God to continue to uplift the company to greater heights.”
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Average price of 5kg cooking gas stood at N6,154.50 in February – NBS
The average price of 5kg of cooking gas increased from N5,139.25 recorded in January, 2023 to N6,154.50 in February, 2024, the National Bureau of Statistics (NBS) has said.
The NBS disclosed this in its “Cooking Gas Price Watch” for February, 2024 released yesterday in Abuja.
The report said the February price represented a 19.75 per cent increase, compared to what was obtained in January, 2024.
The NBS said the average price of 5kg of cooking gas increased on a year-on-year basis by 33.78 per cent from N4, 600.57 recorded in February 2023 to N6, 154.50 in February, 2024.
On state profile analysis, the report showed that Lagos recorded the highest average price at N6, 820.00, followed by Imo at N6, 785.71, and Anambra at N6, 750.00.
It said on the other hand, Yobe recorded the lowest price at N4,912.50, followed by Kebbi and Adamawa at N5,350.00 and N5,385.00, respectively.
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Analysis by zone showed that the South-East recorded the highest average retail price at N6, 616.57 for 5kg cooking gas, followed by the South-West at N6, 513.30.
“The North-Central recorded the lowest average retail price at N5, 723.02,” the NBS said.
Also, the NBS said the average retail price for refilling a 12.5kg cooking gas increased by 28.33 per cent on a month-on-month basis from N11, 735.72 in January, 2024 to N15, 060.38 in February 2024.
The report said the average retail price for 12.5kg cooking gas rose by 46.88 per cent on a year-on-year basis from N10, 253.39 recorded in February 2023 to N15, 060.38 in February 2024.
State profile analysis showed that Ogun recorded the highest average retail price of N16,375.00, followed by Delta at N16,333.33 and Edo at N16,321.43.
On the other hand, the report showed that the lowest average price for 12.5kg of cooking gas was recorded in Bauchi at N13, 167.50, followed by Katsina and Yobe at N13, 562.50 and N13,610.00, respectively.
Analysis by zone showed that the South-East recorded the highest average retail price of N15, 954.60, followed by the South-South at N15, 943.40.
The report said the North-East recorded the lowest price at N14,035.88.
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Average price of 5kg cooking gas stood at N6,154.50 in February – NBS
The National Bureau of Statistics (NBS) says the average price of 5kg of cooking gas increased from N5,139.25 recorded in January, 2023 to N6,154.50 in February, 2024.
NBS disclosed this its “Cooking Gas Price Watch’’ for February, 2024 released on Saturday in Abuja.
The report said the February price represented a 19.75 per cent increase, compared to what was obtained in January, 2024.
The NBS said the average price of 5kg of cooking gas increased on a year-on-year basis by 33.78 per cent from N4, 600.57 recorded in February 2023 to N6, 154.50 in February, 2024.
On state profile analysis, the report showed that Lagos recorded the highest average price at N6, 820.00, followed by Imo at N6, 785.71, and Anambra at N6, 750.00.
It said on the other hand, Yobe recorded the lowest price at N4,912.50, followed by Kebbi and Adamawa at N5,350.00 and N5,385.00, respectively.
Analysis by zone showed that the South-East recorded the highest average retail price at N6, 616.57 for 5kg cooking gas, followed by the South-West at N6, 513.30.
“The North-Central recorded the lowest average retail price at N5, 723.02,” the NBS said.
Also, the NBS said the average retail price for refilling a 12.5kg cooking gas increased by 28.33 per cent on a month-on-month basis from N11, 735.72 in January, 2024 to N15, 060.38 in February 2024.
The report said the average retail price for 12.5kg cooking gas rose by 46.88 per cent on a year-on-year basis from N10, 253.39 recorded in February 2023 to N15, 060.38 in February 2024.
State profile analysis showed that Ogun recorded the highest average retail price of N16,375.00, followed by Delta at N16,333.33 and Edo at N16,321.43.
Read Also: NBS: 5kg cooking gas price hit N5,139.25
On the other hand, the report showed that the lowest average price for 12.5kg of cooking gas was recorded in Bauchi at N13, 167.50, followed by Katsina and Yobe at N13, 562.50 and N13,610.00, respectively.
Analysis by zone showed that the South-East recorded the highest average retail price of N15, 954.60, followed by the South-South at N15, 943.40.
The report said the North-East recorded the lowest price at N14,035.88.
(NAN)
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Cooking gas export may end to cut price
A ban may be slammed on exportation of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, the Federal Government hinted yesterday.
This is part of measures to reduce cooking gas price and support domestic users.
Minister of State (Gas Resources), Ekperikpe Ekpo, yesterday said the government has initiated a bouquet of measures to improve domestic gas supply and remove the disequilibrium that has fueled rising cooking gas price in recent period.
The National Bureau of Statistics (NBS) reported that headline inflation rate rose by 98 basis points from 28.92 per cent in December 2023 to 29.90 per cent in January. A breakdown indicated that inflationary pressures remained mainly around food, with food inflation rising to 35.4 per cent in January as against 33.9 per cent in December 2023.
Nigeria has a proven gas reserves of 208 trillion cubic feet. Recent data showed that natural gas demand in Nigeria rose to 12.12 billion standard cubic meters in 2022, as against about 10.11 billion standard cubic meters in 2021.
From about N7,000 for a 12.5 kilogram (kg) in November 2023, cooking gas price has risen by about 57 per cent in nearly four months to about N18,000 now.
Ekpo, who spoke at the “Internal Stakeholders’ Workshop,” in Abuja, said halting export of cooking gas was necessary to boost domestic supply and reduce price. The theme of the workshop was “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development.”
He said the government was discussing with major stakeholders in the gas sector including the major producers, marketers and regulators with a view to ensuring domestic gas usage takes priority now.
Major gas producers in the country include the Nigerian National Petroleum Company Limited; Total Energies; ExxonMobil; Oando Plc and Chevron among others.
“With the issue of gas, you have seen the demonstration of the Federal Government by withdrawing all taxes and levies from the importation of gas-related equipment. It is a big incentive.
“On the issue of LPG (cooking gas), we are interacting with the critical sectors to ensure that there is no exportation of LPG. All LPG produced within the country will have to be domesticated. And when this is done, the volume will increase and, of course, the price will automatically crash,” Ekpo said.
According to him, the ministry is discussing constantly with critical stakeholders like the Nigerian Midstream and Downstream Petroleum Regulatory Authority and operators such as Mobil, Chevron and Shell to address the issue of domestic gas supply and pricing.
He pointed out that once there is stoppage of export of locally produced domestic gas there will be more volume for the domestic market which will automatically reduce the price of the product.
“I am in contact with the regulation, NMDPRA, we hold meetings almost on daily basis, and the producers such as Mobil, Chevron, and Shell. So, there is that hope that things will turn around. We don’t need to make noise about it,” Ekpo said.
He said with over 208Tcf in proven gas reserves, Nigeria has no business with energy poverty, and it is imperative for all stakeholders to rise up as a people to tackle these challenges head-on.
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He explained that the ministry was engaging stakeholders in series of workshops with the aim of repositioning the Nigerian Gas Sector for optimal performance, in line with President Bola Tinubu’s Renewed Hope Agenda to unlock the country’s abundant gas resources for economic development and poverty eradication.
He recalled that the meeting was the second in a series of engagements with stakeholders in the gas sector.
The first, he said, was the consultative meeting he held with external stakeholders in the gas sector on February 6, which provided a platform to hear from the various associations and groups operating across the gas value chain with a view to understanding the pain points of the industry operators.
According to him, the expectation was that having heard from the operators in our industry, as policymakers, regulators and policy implementers, will internalize the feedback from stakeholders and customers to proffer workable solutions to tackle the issues facing the nation’s gas sector.
Ekpo noted that as part of efforts to ensure a high level of performance and accountability within the Federal Government, Tinubu, through the office of the Special Adviser on Policy and Coordination, has released the Presidential Priorities and Ministerial Deliverables for 2023 – 2027 to create a performance tracking mechanism for the Minister of Petroleum Resources and relevant agencies reporting to him.
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JUST IN: FG stops export of cooking gas to reduce price
The federal government on Thursday, February 23, announced that it has stopped the exportation of Liquefied Petroleum Gas (LPG) also known as cooking gas, to reduce the scarcity and soaring price in the country.
Minister of State, Petroleum Resources, Ekperikpe Ekpo, broke the news to reports at the “Internal Stakeholders’ Workshop,” in Abuja.
The theme of the workshop is “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development.”
Asked what the government has done to control the rising cost of domestic gas, he said, the ministry is discussing constantly with critical stakeholders like the Nigerian Midstream and Downstream Petroleum Regulatory Authority and operators such as Mobil, Chevron, and Shell to address the issue.
He explained that once there is a stoppage of the export of locally produced domestic gas, there will be more volume for the domestic market which will automatically reduce the price of the product.
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His words: “We are interacting with critical stakeholders to ensure that there is no exportation of LPG.
“All LPG produced within the country will have to be domesticated. And when this is done, the volume will increase and of course, the price will automatically crash.
“I am in contact with the regulation, NMDPRA, we hold meetings almost on daily basis, and the producers such as Mobil, Chevron, and Shell. So there is that hope that things will turn around. We don’t need to make noise about it.”
Details shortly…