The pricing of
LPG in Nigeria is mainly based on import of petroleum products on the volume needed from consumption. Since no refineries are operating in the country anymore, we largely depend on importing from other oil producing countries in the
OPEC communities. Storing up to 65,000 litres at the depots is very expensive. The cost of delivery nationwide is also difficult, which of course, increases the cost and make transport more harder. To deliver an entire tanker full of gas to various parts of Nigeria, on bad roads, that same amount of gas could take many days to deliver. Tanker drivers also get charged few cash by road transport agencies for every state they settling in.
Also, remember that with LPG gas, gas imported from foreign countries through major seaports, are distributed to gas depots (wholesalers). You go to the gas depots and you provide the labour to fill your tank instead of having the gas brought to your gas plant and having someone else do the filling.
Mainly, the price of LPG varies on a monthly basis, based on a range of international and local market factors. Before these tankers get to their various depots, price has already incease, due to logistics, clearing and so much more. However, refilling at gas plants still provides one of the cheaper price for LPG, because they buy in wholesaler rates.
