Improved LPG Supplies Prompt Price Reductions Across Nigeria
Households throughout Nigeria are beginning to experience relief as the retail prices for liquefied petroleum gas (LPG), commonly referred to as cooking gas, have started to decline. This shift comes as supply levels improve and depot prices soften, according to reports from The Punch.
Recent updates from industry participants reveal that retail LPG prices have decreased in major cities after a prolonged period of price hikes. However, it’s important to note that these reductions are not consistent due to variations in transportation costs, distances from supply bases, and retailer markups.
A market survey indicates that cooking gas is currently priced between N1,100 and N1,350 per kilogram in cities such as Lagos, Ibadan, and Abeokuta. In contrast, consumers in Benin City, Port Harcourt, and Warri are facing prices ranging from N1,150 to N1,400 per kilogram.
Further regional disparities exist, with Onitsha and Enugu reporting prices from N1,200 to N1,450 per kilogram, while those in Abuja are paying between N1,250 and N1,500 per kilogram. The National Chairman of the Nigeria Liquefied Petroleum Gas Dealers Association, Edu Inyang, noted that cities in the northern region, including Kano and Kaduna, report retail prices between N1,300 and N1,550 per kilogram. Particularly in Maiduguri and parts of the Northeast, consumers are still facing some of the highest prices, ranging from N1,350 to N1,650 per kilogram, reflecting the additional logistics costs associated with transporting products to these areas.
Inyang elaborated that the current retail price landscape, which spans from N1,100 to N1,650 per kilogram, still sees some local retailers charging above this range due to high transportation and distribution expenses. This represents a significant improvement from the substantial increases observed since May when tight supplies and escalating depot prices pushed costs higher in various regions.
According to Inyang, the recent decline can be attributed to the enhanced availability of products stemming from both domestic production and imports, as well as the reduction in depot prices. The easing of prices can also be linked to increased competition among market players and the waning of panic buying, which had temporarily strained supply chains. He emphasized that the retail price discrepancies are caused by varying transportation costs, the distance from depots, and retailer margins.
For consumers, the prevailing prices indicate that refilling a 5kg cylinder now costs between N5,500 and N8,250, while a 6kg refill ranges from N6,600 to N9,900. Inyang noted that for a standard 12.5kg cylinder, consumers should expect to pay between N13,750 and N20,625, depending on their location and the retailer.
Industry experts remain cautiously optimistic about potential further price reductions over the coming weeks, provided there are no significant disruptions to supply chains or logistics. They highlight that if local producers can maintain robust output alongside stable imports, prices may stabilize further. In support of this, Ayobami Olarinoye, National Chairman of the Liquefied Petroleum Gas Retailers Branch of the Nigeria Petroleum and Natural Gas Workers Union, added that supplies are increasingly returning to normal levels, with current retail prices for gas sold at neighborhood shops ranging from N1,600 to N1,800 per kilogram.
Despite this positive momentum, challenges persist, particularly in areas distant from major LPG storage facilities where transportation costs sustain higher prices. The overall market environment indicates that while relief is on the horizon for many households, variations in regional pricing are likely to continue unless broader logistical improvements are achieved.
