The liquefied petroleum gas (LPG) sector in Nigeria is currently experiencing a welcome reduction in prices, with the average retail rate for cooking gas dropping to approximately N1,400 per kilogram in key urban centers, according to industry insiders and vendors.
Following a period of sharp price hikes that saw costs soar beyond N1,800 per kilogram in certain regions, this downward adjustment offers temporary relief to millions of Nigerian households grappling with soaring living expenses and fluctuating energy costs.
Merchants in Lagos, Abuja, and Port Harcourt report that this price easing began in early October and has since extended nationwide. The shift is attributed to enhanced supply from domestic terminals, a modest strengthening of the naira, and a decline in global LPG prices.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) notes that this price correction signals a more balanced domestic market where supply is better aligned with demand.
“An increase in locally sourced gas deliveries has alleviated the burden on importers,” explained Tunde Adelakun, a NALPGAM representative, during a phone interview. “Currently, retail prices range between N1,350 and N1,450 per kilogram, varying by location and transport expenses.”
For many Nigerians, this price drop is a much-needed break amid a broader context of rising energy costs, including electricity tariffs and fuel prices, which have escalated since the removal of subsidies and the naira’s depreciation last year. LPG, recognized as a cleaner and more efficient cooking fuel compared to traditional options like firewood, kerosene, and charcoal, had become increasingly out of reach for many low- and middle-income families.
Statistics from the National Bureau of Statistics (NBS) reveal that the average cost to refill a 12.5-kilogram LPG cylinder surged from N9,000 in October 2023 to nearly N16,000 by August 2025, marking a 78% increase in under two years. Experts suggest that if the current price trend continues through the last quarter, it could help reverse this steep rise.
Industry insiders credit the price relief primarily to boosted local production and distribution efforts by major suppliers like Nigeria LNG Limited (NLNG), which fulfills over 40% of the nation’s LPG demand. “NLNG’s enhanced domestic allocation and quicker vessel turnaround times have stabilized supply,” said a Lagos depot operator who preferred anonymity. “Additionally, importers are increasing volumes as international prices have softened recently.”
Globally, LPG prices-often benchmarked against the Mont Belvieu hub in the U.S.-declined by roughly 10% in September due to subdued worldwide demand and increased output from leading producers. This global trend has eased costs for Nigerian importers, whose expenses are heavily influenced by exchange rates and shipping fees.
Another contributing factor to the local price drop is the gradual appreciation of the naira, which has traded below N1,400 to the dollar on the parallel market in recent weeks, compared to nearly N1,600 in mid-September. “A N50 shift in the exchange rate significantly impacts the landing cost of LPG,” noted a member of the Nigerian Association of LPG Plant Owners. “If the naira continues to strengthen, further price reductions are possible in the near term.”
Nonetheless, stakeholders warn that this price relief might be fleeting unless structural issues within the LPG supply chain are addressed. Challenges such as insufficient storage and bottling infrastructure, poor road networks, multiple taxation layers, and limited foreign currency access for importers persist.
Price volatility has long characterized Nigeria’s cooking gas market, influenced by global supply dynamics and domestic logistical constraints. Despite being Africa’s top gas producer, Nigeria still imports over 60% of its LPG consumption due to limited processing and storage capabilities.
The federal government’s “Decade of Gas” initiative aims to boost domestic gas utilization, reduce reliance on biomass fuels, and lower carbon emissions. However, progress remains slow, and high LPG prices continue to deter widespread adoption, particularly in rural communities.
Energy economist Dr. Francis Agwu described the recent price dip as “a market adjustment rather than a fundamental transformation.” He cautioned that “without sustained investment in local production and distribution infrastructure, Nigeria will remain vulnerable to price shocks whenever international supply tightens or the naira weakens.”
Retailers also expressed concern that demand spikes during the December holiday season could drive prices upward again. “When demand surges, especially in cities, depot prices tend to increase,” said a vendor from Abuja’s Kubwa district. “We appreciate the current price drop, but its longevity is uncertain.”
Despite these uncertainties, the current price moderation offers a brief financial respite for households burdened by inflation, which stood at 28.5% in September according to the NBS. For families allocating up to 10% of their income to cooking fuel, a reduction of N400 per kilogram can result in significant savings.
As Nigeria continues to confront high energy costs, this temporary easing in LPG prices highlights the critical need for sustainable policies that expand gas infrastructure, enhance domestic supply, and protect consumers from global market fluctuations. For now, many Nigerians welcome the relief from one of their daily financial pressures.
