Cooking Gas Crisis Deepens as Retail LPG Price Hits N2,000/kg Amid Worsening Depot Scarcity
- Nigerian households face soaring cooking gas prices due to persistent LPG scarcity at depots
- Global crude oil volatility is driving up cooking gas costs, affecting consumers nationwide
- Experts urge government intervention to alleviate financial strain from rising energy prices
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian households are once again facing a sharp increase in the cost of cooking gas as the persistent scarcity of liquefied petroleum gas (LPG) at depots pushes retail prices to alarming levels across the country.
The latest price surge has intensified concerns among consumers already struggling with rising inflation, high transportation costs, and the increasing cost of essential goods and services.
Source: Getty Images
Depot scarcity drives fresh price hike
Industry operators say supply shortages at major LPG depots have continued to disrupt market activity, forcing marketers to raise prices.
Earlier reports indicated that depot operations slowed significantly due to supply challenges, creating a shortage that has steadily filtered through the distribution chain.
Major cooking gas retailers have already revised their prices. Gasland, one of the notable dealers in the market, now sells LPG at about N1,400 per kilogram, compared to N1,200 per kilogram recorded just a week ago.
The development has raised fears that prices may continue to climb if supply conditions fail to improve in the coming weeks.
Global oil market tensions affect LPG prices
Energy policy experts have linked the rising cost of cooking gas to growing volatility in the international crude oil market.
According to analysts, tensions between the United States and Iran over the Strait of Hormuz have heightened concerns about global energy supplies. The strategic waterway is responsible for transporting nearly 20% of the world's crude oil, making it one of the most critical energy routes globally.
The uncertainty surrounding crude oil supply has triggered increases in international energy prices, with the impact extending to petroleum products such as LPG.
As global crude prices rise, import costs and domestic pricing pressures for cooking gas also increase, ultimately affecting consumers.
Depot prices record significant increases
Data obtained from PetroleumPriceNG shows that major LPG depots implemented fresh price adjustments over the weekend.
Dangote Refinery raised its ex-depot price to N1,120 per kilogram from N1,035 previously. Ardova increased its price to N1,065 per kilogram, while NAVGAS now sells at N1,200 per kilogram.
Techno Oil recorded one of the highest depot prices, with LPG selling at N1,275 per kilogram.
These increases have further squeezed marketers, many of whom have passed the additional costs directly to consumers.
Retail prices approach N2,000/kg
A market survey conducted across several locations revealed that the street retail price of cooking gas has climbed to nearly N2,000 per kilogram in some areas.
The sharp rise has triggered anxiety among households that rely heavily on LPG for daily cooking, with many families now forced to reduce consumption or seek alternative energy sources.
For low- and middle-income earners, the latest increase represents another blow to already strained household budgets.
Experts call for temporary government intervention
Energy policy analyst Osas Igho said the surge in cooking gas prices is placing additional pressure on consumers who are already battling the effects of inflation and a rising cost of living.
According to him, many Nigerians are finding it increasingly difficult to absorb the growing expenses associated with transportation, food, and household energy.
He urged the federal government to consider temporary measures to cushion the impact on consumers until supply conditions stabilise.
Source: UGC
Analysts warn that unless depot supply improves and tensions in the global oil market ease, cooking gas prices may remain elevated, prolonging the financial burden on millions of Nigerian households.
Cooking gas shortage hits Lagos
Legit.ng earlier reported that fresh concerns are rising across Nigeria’s energy market as a growing shortage of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, threatens to trigger another round of price increases for households and businesses.
New market checks have shown tightening LPG supply across major depots in Lagos, with only a handful of facilities currently maintaining sufficient stock for loading operations.
The development has raised fears among marketers and consumers that retail cooking gas prices may soon rise further if supply challenges persist.
Source: Legit.ng
