Major liquefied petroleum gas (LPG) marketers have reduced depot prices by as much as N7 per kilogram, a development that could lead to lower cooking gas refill costs for Nigerian households if the trend continues.
Latest market figures show that PPMC recorded the biggest price cut, reducing its wholesale rate by N7 to N1,010 per kilogram from N1,017 per kilogram. Rainoil Lagos also lowered its depot price by N2 to N1,030 per kilogram, while NIPCO Lagos maintained its rate at N1,025 per kilogram.
Industry stakeholders attributed the decline in depot prices to increased competition among suppliers and improved availability of LPG at the wholesale level.
Although depot prices only reflect the amount paid by distributors before transportation, storage and retail margins are added, experts believe sustained reductions could encourage retailers to lower refill prices, especially in highly competitive urban markets.
They noted that the final price consumers pay will still depend on factors such as logistics costs, operating expenses and product availability across different parts of the country.
Market analysts also said cooking gas prices will continue to be influenced by international energy prices, foreign exchange rates and domestic supply conditions. If wholesale prices remain on the decline, consumers may begin to enjoy more affordable cooking gas in the coming weeks.
This comes after recent data showed a sharp increase in retail cooking gas prices earlier in the year, with both 5kg and 12.5kg cylinder refill costs rising significantly across several states.
