By Juliet Eze
Mounting pressures in Nigeria’s energy market have pushed cooking gas prices to new highs, with industry operators warning that further increases may be unavoidable in the coming weeks.
Checks in Abuja, Lagos and other major cities across the country indicate that Liquefied Petroleum Gas (LPG) is now selling for over N1,000 per kilogramme at retail outlets, marking a sharp rise driven by recent pricing adjustments and persistent supply chain challenges in Nigeria’s gas market.
The latest development follows an upward review of ex-gantry prices by the Dangote Petroleum Refinery, which raised its rate to N825 per kilogramme.
The adjustment has triggered a ripple effect across the distribution chain, with marketers passing increased costs to consumers.
Stakeholders say the price surge reflects broader structural issues within the sector, particularly rising logistics costs, foreign exchange constraints, and continued exposure to global energy price fluctuations.
The Nigerian Association of Liquefied Petroleum Gas Marketers confirmed that transportation expenses, especially those linked to diesel-powered haulage, have surged significantly, adding to the overall cost burden.
Operators also cited terminal charges and infrastructure limitations as contributing factors.
Industry analysts noted that despite Nigeria’s vast gas reserves, domestic LPG pricing remains largely tied to international benchmarks.
Nigerian Pilot reports that as global crude oil prices rise, the cost of propane and butane increases, placing additional pressure on local supply and cooking gas prices.
The situation has raised concerns over affordability, particularly for low- and middle-income households that depend on LPG as their primary cooking fuel.
Experts warn that sustained increases in cooking gas prices could undermine the Federal Government’s clean energy drive by pushing consumers toward cheaper alternatives.
In recent years, authorities have promoted LPG adoption as a safer and more environmentally friendly option compared to firewood and kerosene.
However, recurring price volatility continues to challenge that transition.
Energy economists say stabilising Nigeria’s cooking gas market will require targeted interventions, including improved distribution infrastructure, reduced logistics costs, and better access to foreign exchange for import-dependent players.
Meanwhile, global supply dynamics remain uncertain. In Europe, Volodymyr Zelenskyy has indicated that Ukraine is considering new gas import options from Mozambique to offset production losses linked to the Russia-Ukraine War, a development that could further tighten global supply and sustain price pressures.
