Cooking gas prices crash 39% in Lagos, Enugu as retailers pass on lower depot costs

Cooking gas prices have dropped by nearly 39% in less than two months, with retail outlets in Lagos and Enugu now selling Liquefied Petroleum Gas (LPG) at about N1,400 per kilogramme. This follows a fall in depot prices driven by stronger supply in July.

Prices had climbed to record highs of over N2,000 per kilogramme in June, with some locations charging as much as N2,300/kg. Now, many retailers have slashed pump prices, easing pressure on households battling high living costs.

Households save thousands on refills

Juliet Onyinyechi, a Lagos resident, expected to spend N13,800 to refill her 6kg gas cylinder at a filling station in Ojo Local Government Area. Instead, she was charged N8,400, saving N5,400 in a single purchase.

A Lagos mother of five, identified as Mama D, said the reduction has brought much-needed relief after her family temporarily abandoned cooking gas because it had become unaffordable. Many families had resorted to charcoal and firewood during the price spike.

Depot prices drop sharply

Industry checks show depot prices have fallen significantly. Current loading prices include 11 Plc at N1,025/kg, Ardova at N1,020/kg, Navgas at N1,005/kg, NIPCO at N1,025/kg, PPMC at N1,005/kg and Rain Oil at N1,030/kg.

The lower wholesale costs have enabled retailers to reduce pump prices by more than 30% nationwide. In Enugu, retail prices have dropped to around N1,400/kg, down from about N1,900/kg in June, though prices still vary by location and retailer.

Obiora Ani, a gas dealer in Uwani, Enugu, said stronger nationwide supply has helped stabilise the market. He noted that lower prices are encouraging more customers to refill their cylinders rather than delay purchases due to high costs.

Inflation, supply gap and the road ahead

The decline comes as Nigeria's headline inflation eased to 15.91% in June, but food inflation remained elevated at 17.52%, driven by insecurity, transportation costs and other supply constraints.

Despite holding one of Africa's largest natural gas reserves of about 215 trillion cubic feet, Nigeria still depends on imported LPG to meet local demand. National cooking gas consumption has risen from 1.5 million metric tonnes in 2023 to an estimated 1.8 million metric tonnes in 2026, while domestic supply averages only about 1.6 million metric tonnes, leaving a supply gap that continues to influence prices.

Energy experts say sustaining the recent price decline will require increased domestic gas production, stable foreign exchange rates and greater investment in gas infrastructure. They warn that any disruption in supply could quickly push cooking gas prices higher again.

Nigeria's recent decision to remove import duties and VAT on cooking gas, compressed natural gas and electric vehicles is expected to further support lower prices and cleaner energy adoption.

For households, lower LPG prices put money back in pockets and ease inflation pressures. For businesses, cheaper gas reduces operating costs, but the supply gap and forex risks mean sustained relief depends on policy follow-through.