Expect a Crash: Marketers Announce Good News for Cooking Gas Price After FG’s Orders
- Cooking gas prices in Nigeria may drop to N900-N1,100 per kilogram by 2026 with government reforms
- Supply chain challenges and foreign exchange pressures currently keep cooking gas prices elevated in Nigeria
- Federal Government prioritises domestic LPG supply to stabilise prices and reduce reliance on imports
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerians battling soaring cooking gas prices may soon have reasons to hope as industry marketers have projected a sharp decline in prices if the Federal Government fully implements ongoing reforms aimed at boosting domestic supply and easing distribution bottlenecks.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) says the retail price of cooking gas could drop significantly to between N900 and N1,100 per kilogram by the end of 2026, a development that could bring major relief to millions of households currently grappling with record-high prices.
Source: Getty Images
Marketers reveal conditions for price crash
Speaking in Lagos, the President of NALPGAM, Mr Edu Inyang, explained that while Nigeria has made considerable progress in local Liquefied Petroleum Gas (LPG) production, supply chain challenges, logistics costs and foreign exchange pressures continue to keep prices elevated.
According to him, the projected reduction in prices is achievable only if the government strengthens local supply, improves infrastructure and tackles inefficiencies across the LPG value chain.
"The industry can achieve a more affordable and stable pricing environment with adequate domestic supply, improved infrastructure, exchange-rate stability and supportive government policies," Inyang said.
Why have cooking gas prices risen sharply
Cooking gas prices have climbed dramatically in recent months, putting pressure on household budgets across the country.
While LPG sold for between N900 and N1,000 per kilogram in April, prices have surged to as high as N2,000 to N2,500 per kilogram in several parts of Lagos and other major cities.
According to Inyang, one of the major reasons for the spike was a reduction in domestic LPG allocation after the Dangote Refinery clarified that much of its LPG production was earmarked for the manufacture of higher-value products rather than the local cooking gas market.
This development, combined with growing consumer demand and inadequate storage facilities, created supply disruptions that pushed prices higher.
Storage, transport costs worsen crisis
NALPGAM noted that storage infrastructure remains concentrated around Lagos, the Edo/Delta axis and Port Harcourt, leaving many northern states dependent on costly transportation networks.
The association also blamed high logistics costs, foreign exchange challenges, multiple handling charges and speculative trading for worsening the price situation.
Inyang warned that unless these bottlenecks are addressed, consumers may not fully benefit from increased local gas production.
FG orders domestic supply before exports
Meanwhile, the Federal Government has reassured Nigerians that cooking gas supply remains stable despite the recent price increases.
The Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, attributed the surge in prices to exchange-rate volatility, infrastructure gaps, rising logistics costs and fluctuations in international LPG prices.
To address the challenge, the minister directed that all LPG produced within Nigeria should be prioritised for domestic consumption before exports, according to a report by News Agency of Nigeria (NAN).
He described the policy as crucial to increasing local availability, reducing dependence on imports and stabilising prices over time.
Ekpo also instructed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to work closely with industry players to strengthen supply coordination and prevent market disruptions.
Households hope for relief
Recent figures from the National Bureau of Statistics show that the average cost of refilling a 5kg cylinder rose from N7,655.73 in March to N8,706.93 in April, while the cost of refilling a 12.5kg cylinder increased from N19,652.83 to N22,382.20.
Source: Getty Images
Across Lagos, cooking gas currently sells for between N1,600 and N2,200 per kilogram, depending on location and retailer.
For millions of Nigerians who have been forced to cut back on cooking gas usage or switch to alternative fuels, the forecast of a possible price crash offers a glimmer of hope, although industry experts caution that global energy prices and exchange-rate movements will continue to influence market outcomes.
How cooking gas prices soared in Nigeria
Legit.ng earlier reported that for millions of Nigerian households, cooking gas, once seen as a cleaner and more affordable alternative to kerosene and firewood, has increasingly become a luxury.
Since 2023, the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, has surged dramatically, putting additional pressure on families already battling inflation and rising living costs.
The sharp increase has forced many households to cut consumption, revert to traditional cooking fuels, or ration their gas usage to make cylinders last longer.
Source: Legit.ng
