Cooking gas prices crash nearly 40% as import surge reshapes market

Nigeria's cooking gas prices have fallen by up to 39% since June, with a kilogram now selling for about N1,400 in Lagos, Enugu and other major cities. The crash follows a wave of Federal Government import permits that boosted LPG supply and eased months of scarcity that pushed prices to record highs.

Households that were paying between N2,000 and N2,300 per kilogram two months ago are now seeing sharp relief at the pump. Industry players say the price movement reflects improved supply conditions, not a drop in demand.

Why prices are crashing

Market sources said the Federal Government's decision to grant import permits to LPG marketers significantly increased product availability, helping to stabilise prices after months of scarcity. An industry insider described the scale of approvals as massive.

"The rate at which import permits were approved recently was massive. That is why prices are crashing," the source told BusinessDay.

Another industry source said the domestic market had previously faced disruptions to global LPG supplies caused by the United States-Iran conflict. Financing constraints and delays in obtaining import approvals further limited supplies, worsening shortages and pushing prices up. With imports now flowing, these pressures have eased considerably, leading to lower depot and retail prices.

Imports drive supply as local output falls

Latest data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show imported LPG has played a major role in restoring stability. The regulator's June 2026 Fact Sheet on the State of the Midstream and Downstream Sector revealed average daily LPG receipts rose by 24%, from 4.1 kilotonnes per day (KT/D) in May to 5.1 KT/D in June.

However, domestic LPG supply fell by 10%, declining from 4.0 KT/D in May to 3.6 KT/D in June. During the same period, LPG imports surged dramatically from just 0.1 KT/D to 1.5 KT/D, an increase of about 1,400%. The figures underscore how dependent Nigeria has become on imports to meet cooking gas demand as local production struggles to keep pace.

Consumers get relief as NLNG boosts domestic supply

The sustained price decline is expected to reduce pressure on household budgets and encourage more Nigerians to use cleaner cooking fuel instead of firewood and kerosene. The market could remain relatively stable in the near term if import approvals continue and global LPG prices stay favourable.

Further relief is on the way after Nigeria LNG Limited (NLNG) announced it has dedicated 100% of its LPG to the domestic market, ending exports. Speaking during his maiden media briefing, tagged Presentation of NLNG Facts and Figures 2026, Managing Director and Chief Executive Officer Adeleye Falade said the company supplied a record 500,000 metric tonnes of LPG to the Nigerian market in 2025, the highest annual volume since local distribution began in 2005.

For Nigerian households, the falling cost of cooking gas offers meaningful relief amid a broader rise in living expenses. If import approvals remain smooth and global conditions hold, consumers could enjoy cheaper, cleaner fuel for months to come.