Cooking gas prices drop by over N1,000 per kg as depots cut rates

Major Nigerian depots have slashed the price of liquefied petroleum gas (LPG), commonly known as cooking gas, by more than N1,000 per kilogram, offering relief to households and businesses after weeks of sharp increases. The price cuts follow a sustained decline in global crude oil prices, which has lowered the cost of petroleum products across the board.

Depot prices fall sharply from recent highs

Fresh market data from PetroleumpriceNG shows that several major marketers have reviewed their depot prices downward. The latest rates include: Techno Oil at N1,075 per kilogram, Ardova Plc at N1,080 per kilogram, Rainoil (Lagos) at N1,090 per kilogram, and 11Plc at N1,090 per kilogram. Dangote Refinery is also among the marketers that have adjusted their LPG prices, reflecting the broader downward trend in the domestic market.

The reductions come just weeks after some depots were selling LPG for more than N2,000 per kilogram, a surge that raised serious concerns among consumers who depend on the product for daily cooking.

Global crude slump drives local relief

The decline in cooking gas prices mirrors the recent weakness in the international oil market. Data from Oilprice.com shows that global crude benchmarks have continued to retreat. As of Friday, July 3, 2026, Brent crude traded slightly above $71 per barrel, while West Texas Intermediate (WTI) fell to $68.60 per barrel, its lowest level since March. Mirban crude was priced at $66.29 per barrel.

Lower crude prices have reduced production and import costs for petroleum products, prompting marketers to review their pricing. The Federal Government had earlier directed marketers to increase LPG imports in a bid to address supply shortages and bring down prices after the sharp spike witnessed in recent weeks. Industry players believe the combination of improved supply and weaker global oil prices has contributed to the latest reduction in depot rates.

Analysts say prices could go even lower

Despite the latest price cuts, some analysts argue that cooking gas remains more expensive than current market fundamentals justify. Financial analyst Osas Igho said the decline in international crude oil prices and lower landing costs should translate into even cheaper LPG for consumers. According to him, cooking gas should retail at below N1,000 per kilogram, noting that current landing costs have already fallen beneath that level.

He added that although consumers are beginning to benefit from the recent adjustments, there is still room for further reductions if global oil prices remain subdued and supply continues to improve.

Legit.ng earlier reported that Nigeria's cooking gas market is facing renewed pressure as retail prices fluctuate across the country, despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) reporting that the nation has an average LPG stock sufficiency of 11 days. The latest figures from the NMDPRA factsheet for May 2026 show that while supply remains available, growing demand and shortages at depots are beginning to strain the market. LPG has the lowest stock cover among Nigeria's major petroleum products.

For Nigerian consumers, the price drop means immediate relief at the pump and for household cooking budgets. But if global crude prices stay low and supply improves further, analysts expect cooking gas to become even cheaper in the weeks ahead.