Rising LPG Prices in Nigeria: A Growing Concern for Consumers
The prices of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, have surged again across major Nigerian cities, with marketers attributing the increase to persistent supply chain disruptions. This has placed a heavy burden on consumers, who are already struggling with rising living expenses.
Although there was a price hike in cooking gas that went up to about N2,000 or more per kilogramme a few weeks ago, it later dropped to around N1,000 per kilogramme. However, from last week, the price has been rising again, particularly in Lagos, Ogun, Oyo, and some other states in the South West. In the Federal Capital Territory, prices also increased, with one consumer reporting buying a kilogramme for N1700 in Lugbe on Saturday. In the Durumi area of the FCT, some retailers were selling the product for between N1800 and N2,000.
Market Instability and Consumer Concerns
The Major Energy Marketers Association of Nigeria (MEMAN) attributed the current price increase to supply hiccups. LEADERSHIP visited gas stations in Lagos and Ogun states, where findings showed a recent price surge. A food vendor at Anifowoshe in Ikeja, Lagos, Modinat Lanre, expressed concern over the recent surge in cooking gas prices.
“The price keeps going up. I use gas a lot for cooking. During the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery issue, I was buying it for N1,500 per kilogramme. After the matter was resolved, it dropped to N1,100 per kg. However, to my surprise, it has risen again to N1,300 per kilogramme. We have no choice but to buy it because it’s essential for our business,” she said.
In Rivers State, the prices of cooking gas per kilogramme are not the same in parts of Port Harcourt, the state capital. A survey by LEADERSHIP in Old Port Harcourt Township revealed that a kilogramme of cooking gas is sold at N1,200.00 per kg at gas filling stations, while other roadside retailers sell at N1,600.00. In the Eagle Island area of the Rivers State capital, cooking gas is sold at N1,035.00 per kilogramme, while roadside shop owners sell at N1,400.00 per kilogramme.
Jamiu Fasasi, who visited a filling station to refill his cylinder, was shocked by the new rate. “N1,300 per kg? But the price had come down before. I bought it last Sunday for N1,100 per kilogramme. Why has it gone up again?” he queried. Another customer, who came from the Opebi area to Ikeja to refill gas, remarked, “Is it N100 or N200 increase that’s making you complain? Come to Opebi, my area, where they’re selling it for N2,000 per kg and above.”
Supply Chain Challenges and Government Initiatives
A wholesale buyer and reseller confirmed the upward trend. “Yes, my brother, the price is rising, but we’re managing it like that,” he said. When asked about the cause, he attributed it to lingering issues between Dangote Refinery and PENGASSAN. “Their dispute disrupted the market, so price fluctuations are expected. But I believe things will stabilise before December.”
In Atan, Ogun State, Bukayo Ojo reported purchasing gas at N1,400 per kg, noting that it was the cheapest option available in her area. Meanwhile, speaking on the market instability, the executive secretary of MEMAN, Mr. Clement Isong, attributed it to supply challenges. Isong, who spoke to LEADERSHIP on concerns about the inability to create market stability, expressed some reservations about the system creating a buffer at the moment due to existing supply challenges.
However, he expressed optimism that, in the long term, there will be moderation and stability. The executive secretary cited the efforts of the Decade of Gas, which has laid out a pathway to potentially transform the market. Key aspects of the initiative to tackle the LPG shortage include boosting local supply by encouraging domestic LPG production and supply to reduce the heavy reliance on imports—which account for around 60 per cent of consumption—and shielding the market from volatile international prices and foreign exchange issues.
Challenges and Future Outlook
Despite these efforts, challenges such as inadequate infrastructure, high prices (due to import reliance and forex fluctuations), and pipeline vandalisation continue to hinder the full realisation of a sufficient and stable LPG supply under the initiative. Meanwhile, LEADERSHIP checks show that marketers are not willing to take the risk of importing the product.
One of the importers who craved anonymity said the company took a risk to import 8,000 metric tonnes when Dangote Refinery had issues with labour unions and was lucky enough to sell off the stock. He said now that the refinery has resumed LPG production, marketers would not like to take any further risks.
Our correspondent also gathered that the importation of gas would be more expensive now that most European countries are importing the product massively. Our sources attributed the rise in price to increased demand because of the festive period of weddings, parties, and activities that require much cooking, thus creating a major gap in supply and demand.
Government Response and Consumer Calls for Action
Following the recent price hike, the federal government mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify LPG depot monitoring to prevent product hoarding. The minister of state for petroleum resources (Gas), Ekperikpe Ekpo, said the recent price surge was primarily caused by two factors involving the industrial action by PENGASSAN at the Dangote Refinery. Ekpo added that the other factor was the ongoing maintenance activities at the Nigeria LNG Train Four facility, which reduced the volume of LPG available in the domestic market.
Meanwhile, Nigerians have continued to urge the government to find a lasting solution to the rising cost of LPG, as many households rely on it for daily cooking. Christian Chibuzor, an environmentalist, said it was a good thing the government was trying to promote the use of cooking gas, but that they need to make it affordable for all Nigerians. “Using cooking gas will help lower carbon emissions compared to traditional firewood, charcoal, or kerosene, which will help mitigate climate change and improve air quality, thereby reducing respiratory diseases. However, if the price remains high, the transition to cooking gas will be difficult to achieve, especially in rural areas. Therefore, the government must demonstrate commitment to reducing the price.”