Cooking Gas Demand Drops To Seven-Month Low As Iran Conflict Exposes LPG Supply Gaps
By Aboki Forex —
Nigeria's cooking gas demand fell nearly 23% to 123,000 tonnes in June 2026, the lowest level in seven months, as the Iran conflict disrupted global liquefied petroleum gas (LPG) supplies and local output weakened at the same time.
The figures come from energy intelligence firm Argus, which cited data from the Midstream and Downstream Petroleum Regulatory Authority. The decline played out between March and June 2026, when tighter import conditions met a global market already under stress from the conflict.
Local output falls, imports spike
Domestic LPG production dropped by more than 20% over the period. Lower output from inland gas-processing plants and scheduled maintenance at the Dangote refinery's residual fluid catalytic cracker drove the fall.
To cover the shortfall, Nigerian LPG operators sharply raised imports. They brought in 46,000 tonnes in June alone, up from just 3,000 tonnes in May and nothing at all in April.
Prices ease after US-Iran peace deal
Relief came after a US-Iran peace deal in June pushed international LPG prices sharply lower. The Argus butane West Africa index fell more than 40% to $513.50 per tonne on June 24, against a March peak of $860.50 per tonne.
That price drop helped Nigeria swing from four straight months of deficit into a 30,000-tonne LPG surplus. By July, domestic supply had recovered strongly. Output from the Dangote refinery climbed 71% to 25,800 tonnes, while gas-processing plants raised supply by 88% to 47,000 tonnes.
Nigeria's average retail LPG price fell 10% month on month to N1,491.75 per kilogramme in July. Demand rose 7% to 136,500 tonnes, the first increase since March.
Earlier, the National Bureau of Statistics reported that the average retail price for refilling a 5kg cylinder of LPG rose 13.73% month on month, from N7,655.73 in March 2026 to N8,706.93. On a year-on-year basis, the price rose 10.42% from N7,885.60 recorded in April 2025. The same report showed the average retail price for refilling a 12.5kg cylinder rose 13.89% month on month.
Ghana also feels the strain
Nigeria was not alone. In Ghana, seaborne LPG imports fell by nearly a third year on year to about 24,000 tonnes per month between April and August, according to vessel-tracking firm Kpler.
The shortfall pushed Ghana's LPG stocks down by more than three-quarters to just 5,500 tonnes in early July, roughly eight days of consumption. Higher output from the 40,000-barrel-per-day Sentuo refinery helped cushion the blow.
What it means for Nigerian households
The July price cut gave households and small businesses a brief breather. But the swing from deficit to surplus rested on imports and a single refinery's maintenance schedule, which shows how thin Nigeria's LPG buffer remains when global supply tightens.