Cooking gas prices crash 39% as supply improves, but depot costs are rising

Cooking gas prices have fallen by about 39 per cent across Nigeria, bringing relief to households after months of high costs. The drop follows government interventions that stretched national LPG availability from 11 days to 22 days.

Prices now range between N1,100 and N1,650 per kilogramme, depending on location. Daily domestic supply also rose from 4,262 metric tonnes in May to 5,040 metric tonnes in June, helping to ease pressure on the market.

Lagos and Ibadan lead price cuts

In Lagos and Ibadan, households can now buy cooking gas for between N1,100 and N1,350 per kilogramme. That is a sharp fall from the peak of about N2,300 per kilogramme recorded in June, when high LPG prices strained family budgets.

Before the crash, prices had hit as high as N2,000 per kilogramme in April and May. The decline offers breathing space for families who had reduced gas use or switched to charcoal and firewood because of cost.

NLNG warns on taxes and infrastructure

Adeleye Falade, Managing Director of Nigeria LNG Limited, said keeping prices low depends on collaboration between the Federal Government, regulators and industry operators. He spoke when he led an NLNG delegation to meet President Bola Tinubu at the State House in Abuja.

“Improving LPG accessibility is important to Nigeria’s energy transition and to the wellbeing of millions of Nigerian households,” Falade said.

He also called for action on multiple taxes, levies and regulatory charges imposed by different government agencies. According to him, these charges increase operating costs, create uncertainty for businesses and could discourage fresh investment in the LPG industry.

Falade reaffirmed NLNG’s commitment to supporting Nigeria’s domestic LPG market and aligning its activities with the Federal Government’s development agenda.

Depot prices begin to climb

Despite the retail price crash, wholesale pressure is emerging. LPG depot prices in Lagos have risen in recent days, with some operators adjusting rates amid concerns over higher international crude oil prices.

Data from PetroleumPriceNG showed AYM Shafa selling LPG at about N1,050 per kilogramme, while Ardova Plc was listed at N975. NIPCO Lagos and 11Plc were both pegged at around N980 per kilogramme.

Changes in depot prices often filter through the supply chain, affecting distributors, retailers and eventually households. Abuja residents are already grappling with soaring rates, with cooking gas touching N1,650 per kilogramme as global crude oil prices spike.

For consumers, the recent drop is welcome, but the turn at the wholesale level means the relief may not last unless supply remains steady and the government follows through on reducing regulatory costs.