Cooking Gas Prices in Nigeria Fall by 40%, Dangote Announces New Gantry Rate
- Cooking gas prices have dropped by about 40% from their June peak following improvements in supply
- Consumers had been paying as much as N28,750 to refill a 12.5kg cylinder during the price surge
- The NLCGA is targeting 5 million metric tonnes in annual domestic LPG consumption by 2030
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Cooking gas prices in Nigeria have fallen by about 40% from their peak in June as improved supply and collaboration among industry operators help ease pressure on the market.
Lanre Baiyewu, Executive Secretary and Chief Executive Officer of the Nigeria Liquefied and Compressed Gases Association (NLCGA), disclosed this at an industry event in Lagos.
Source: Getty Images
Baiyewu said the reduction followed efforts involving government agencies, terminal operators, local producers, off-takers, marketers and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
How high cooking gas prices rose
The national average price of liquefied petroleum gas (LPG) stood at about N1,360 per kilogram in February before climbing above N2,000 per kilogram in June.
Prices reached about N2,300 per kilogram in some locations, pushing the cost of refilling a 6kg cylinder to around N13,800 and a 12.5kg cylinder to as much as N28,750.
Baiyewu attributed the sharp increase to supply shortages, higher transportation and logistics costs, international energy prices and movements in the foreign exchange market.
The increase put additional pressure on households and small businesses that depend on LPG for cooking and other activities.
Some consumers and retailers have welcomed the recent decline but called for further reductions.
Aisha Bala, a resident of Utako in the Federal Capital Territory, said sustained lower prices would help discourage households from switching to charcoal and other alternative fuels.
Agnes Idoko also called for faster action, while Silas Igba, an LPG retailer in Zuba, Abuja, said the earlier price increases had affected sales.
NLCGA calls for more investment
Baiyewu said further measures were needed to prevent another supply disruption and called for the full implementation of the Petroleum Industry Act (PIA).
He said Nigeria's LPG market remains exposed to international energy prices and exchange rate movements because global pricing benchmarks continue to influence domestic costs, Leadership reports.
Members of the NLCGA are increasing investment in storage, transportation, cylinder manufacturing and distribution infrastructure.
The association expects the investments to strengthen the domestic supply chain and reduce the impact of future supply disruptions and price shocks.
The NLCGA is targeting domestic LPG consumption of five million metric tonnes annually by 2030 under the leadership of its new president, Ladi Falola.
Source: Getty Images
The association said achieving the target would require sustained investment and cooperation among producers, terminal operators, marketers, regulators and transporters.
The NLCGA is also supporting the government's gas-for-mobility initiative, which seeks to expand the use of gas as a fuel for road transportation.
Dangote announces new cooking gas price
Earlier, Legit.ng reported that Dangote Refinery has increased its Liquefied Petroleum Gas (LPG) price from N980 to N1,030 per kilogram, raising fresh concerns about the cost of cooking gas for millions of Nigerian households already under financial pressure.
The refinery's price hike comes against the backdrop of wide retail price swings recorded across the country in August 2026, with data covering 18 locations showing that consumers paid between N1,200 and N1,500 per kilogram, depending on where they lived.
Source: Legit.ng
