Juliet Ezeh
Nigeria’s fragile cost-of-living balance is facing renewed strain as rising cooking gas prices deepen pressure on households already battling inflation across food and transportation.
Latest market signals indicate that retail prices of Liquefied Petroleum Gas (LPG), commonly used for cooking, have climbed to around ₦1,000 per kilogramme nationwide, with industry operators warning that further increases are imminent.
The spike follows a recent upward price adjustment by the Dangote Petroleum Refinery, which raised its ex-gantry LPG price to ₦825 per kilogramme—an adjustment that is rapidly cascading through the downstream market.
Industry sources told Westbridge that while refinery pricing is a major factor, the broader crisis is being driven by a convergence of structural challenges, including rising logistics costs, foreign exchange volatility, and Nigeria’s continued exposure to global energy price shocks.
According to the Nigerian Association of Liquefied Petroleum Gas Marketers, transportation costs—particularly diesel-powered haulage—have become a dominant driver of final retail prices, significantly widening the gap between depot and consumer rates.
Market analysts note that the situation reflects a deeper vulnerability within Nigeria’s energy supply chain. Despite being one of Africa’s largest gas producers, the country still relies partly on import-linked pricing, leaving domestic consumers exposed to fluctuations in global crude oil markets.
As crude prices rise internationally, the cost of propane and butane—the key components of LPG—also increases, feeding directly into higher local prices. This dynamic, combined with infrastructure gaps and high terminal charges, continues to limit price stability in the domestic market.
For millions of urban households, LPG remains the primary cooking fuel, making the latest increase particularly significant. Experts warn that sustained price hikes could reverse recent gains in clean energy adoption, as more families may be forced to revert to cheaper but less environmentally friendly alternatives such as firewood and kerosene.
The Federal Government has, in recent years, promoted LPG as a cornerstone of its clean energy transition policy. However, recurring price volatility is now testing the sustainability of that strategy, raising concerns about affordability and long-term adoption.
Westbridge findings show that unless there is targeted intervention—particularly in logistics, infrastructure, and foreign exchange stability—the upward pressure on LPG prices is unlikely to ease in the near term.
Meanwhile, global energy uncertainties continue to shape supply dynamics beyond Nigeria. In Eastern Europe, Volodymyr Zelenskyy has indicated that Ukraine is exploring new liquefied natural gas supply options from Mozambique, as the country seeks to offset production losses caused by the ongoing Russia-Ukraine War.
The development underscores a broader global scramble for gas resources, further tightening supply conditions and reinforcing price pressures in emerging markets like Nigeria.
With both domestic inefficiencies and global market forces at play, analysts say Nigerian consumers should prepare for continued volatility in cooking gas prices—at least in the short term.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.