Dramatic rise in the price of 20 Tons of LPG
-
0
Comment(s)
- Author:
Muyiwa Ige(LPG Stakeholder and Consultant)
The price of cooking gas has risen sharply within the past few days at the LPG (Cooking Gas) Depots in Nigeria.
20 Tons of LPG which was sold at the rate of N5,350,000 at the Navgas LPG Terminal in Apapa, on the 22nd of January, 2021, now goes for N5,600,000, on the 28th of January, 2021.
Below in a tabular form is the LPG Depot price differential for 20 Tons of LPG for two dates.
|
|
22nd of January 2021
|
28th of January 2021
|
|
Rain Oil LPG Depot, Ijegun, Lagos
|
Out of stock
|
N5,600,000
|
|
Navgas LPG Depot, Apapa, Lagos
|
N5,350,000
|
N5,600,000
|
|
Nipco LPG Depot, Apapa, Lagos
|
N5,350,000
|
Out of stock
|
|
Matrix LPG Depot, Warri, Delta
|
N5,350,000
|
N5,600,000
|
|
Prudent LPG Depot, Oghara, Delta
|
N5,330,000
|
N5,500,000
|
|
Stockgap LPG Depot, Port-Harcourt, Rivers
|
N5,400,000
|
Out of stock
|
|
Techno Oil LPG Depot, Kirikiri, Lagos
|
N5,350,000
|
N5,550,000
|
The dramatic rise in the price of LPG at Nigeria’s LPG depots is most likely attributable to supply constraints which has made the international demand for the product to outstrip its supply.
The seasonal increase in the price of the product during the winter season in temperate countries, when more LPG (Cooking Gas) is usually needed for heating purposes, is also not unconnected to this rise in price.
In addition, particularly “culpable” is the recent astronomical rise in the naira-US dollar exchange rate.
Since the LPG depots in Nigeria buy the product in US dollars, the unfavorably high exchange rate raises the equivalent buying price in naira, which automatically increases the ex-depot selling price.
The price of cooking gas (LPG) at the depots is expected to fall when the output from LPG Processing plants around the world increases, naira-dollar exchange rate drops and winter abates.