Consumers Lament As Cooking Gas Price Hits N1,500/kg

By CHIKA IZUORA, ABIODUN SIVOWAKU, Lagos

Households in Lagos and Abuja and other cities across the country, are feeling the pinch as retail cooking gas prices climbed to as high as N1,500 per kilogramme in some neighbourhoods, with consumers and traders blaming tightening supplies and rising demand.

Global Liquified Natural Gas (LPG) or cooking gas shortages is fast spreading as disruptions in Middle Eastern LPG exports and reduced refinery runs have tightened global propane and butane markets, while US LPG exports have surged.

Global oil demand is forecast to contract by 420,000 b/d year-over-year in 2026 to 104 million b/d, according to International Energy Agency (IEA), a downward revision of 1.3 million b/d from the agency’s pre-Iran war forecast.

Mounting supply losses are rapidly depleting inventories while volatility across crude and refined product markets continues to intensify, the International Energy Agency (IEA) said in its May 2026 Oil Market Report.

The global market disruptions have resulted to a sharp rise in the price of the product across the country as depot stocks dry up amid increasing domestic demand.

Multiple market sources told Petroleumprice.ng that limited product availability at major supply points has triggered aggressive upward price movements among retailers, with many already selling above N1,500 per kilogramme.

Operators attributed the rising prices to thin depot stock, reduced loading activity, and limited ticket availability from Dangote Petroleum Refinery, which has become one of the dominant suppliers in the domestic LPG market.

In Abuja, Mary Blessing, a resident of Dei‑Dei, told our reporter that she bought cooking gas at N1,500 per kilogramme, up from N1,300 a month ago.

She said she went to a neighbourhood shop because she could not find better prices and paid N7,500 to refill a 5kg cylinder. Mary said the rise had hit her household budget hard and that she was cutting back on meals to cope.

She added that she had called around and found that some major filling stations were selling cheaper. “I checked at NIPCO in Jikwoyi and they were selling at N1,350 per kg,” Mary said, explaining that she could not travel the extra distance to get her supplies.

She said she hoped prices would fall soon, or that suppliers would bring more stock to local outlets.

However, in Lagos, the price of cooking gas is much lower than in other parts of the country due to the proximity to the suppliers.

An official at a Gas station in Ikeja, told our correspondent that the price of cooking gas now sold at N1,300 per kilogramme, up from N1,250.

He believed many things could have led to the increment.

Tajudeen Salau, who just refilled his cylinder with N3,900, said, “I came to buy gas and found they have increased it by N50. I used to buy at N1,250, but now it’s N1,300.”

A customer from Magoro said local shops in her area were selling gas for N1,400.. “I stay in Magoro and 1kg of gas was being sold at N1,400,” she said. “With the recent rise, it could now be N1,500 to N1,600.”

Wisdom Emeka, a resident of Shasha, said he last bought gas at N1,300 per kilogramme and expects prices to rise further because he purchases from a neighbourhood shop.

In Maryland, Joseph Ologeh, informed LEADERSHIP that he bought at N1, 400 per kilogramme from N1, 200 that was previously sold.

Sources attributed the development to rising demand for the product in Lagos and other parts of the country, as more households and businesses switch to cooking gas.

Depot pricing showed that Dangote Petroleum Refinery sold LPG at N1,060 per kilogramme, while Ardova Plc and Navgas sold at N1,065/kg and N1,085/kg respectively.

Operators warned that the retail price of LPG could rise above N1,500/kg if the supply situation persists.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) report showed that Nigeria’s domestic gas utilisation increased in March 2026, reinforcing the federal government’s push to deepen local consumption of natural gas for power generation, industries and other commercial uses.

Also, data by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that domestic gas sales rose to 55,903.72 million standard cubic feet, MMSCF, in March 2026 from 52,300.45 MMSCF recorded in February 2026.

The increase came amid higher national gas production during the period.

Meanwhile, retail prices of cooking gas, could climb toward N2,000 per kilogram in parts of Nigeria as mounting supply shortages continue to squeeze the domestic market despite official claims of adequate product sufficiency, industry operators have told Petroleumprice.ng.

This comes as the latest April 2026 factsheet released by NMDPRA showed that Nigeria currently maintains only 13 days of LPG sufficiency nationwide, one of the lowest stock coverage levels among major petroleum products.

The regulator’s data also revealed a widening imbalance in the LPG market, with average daily consumption reaching 4,818 metric tonnes per day compared to average daily supply of 4,545 metric tonnes per day in April.

Industry marketers say the deficit is already beginning to reflect across depots and retail outlets, particularly in Lagos, where available volumes have tightened considerably in recent days.

According to depot sources, Navgas Limited remains the only LPG seller currently supplying the Lagos market, with ex-depot prices hovering around N1,200 per kilogramme.

However, marketers warned that retail prices could rise significantly higher if supply conditions fail to improve in the coming weeks.

“The market is already under pressure because supply is not matching demand.

Retailers are crossing N1,500/kg already in some locations, and if the current trend continues, N2,000/kg is possible,” a marketer familiar with LPG distribution in Lagos said.

Another operator noted that the 13-day sufficiency level cited by the NMDPRA may not fully reflect actual depot-level availability currently being experienced by marketers across the supply chain.

“What is on paper and what marketers are seeing physically are not exactly the same. Product availability is still very tight at loading points,” the source added.

The NMDPRA report showed that LPG remains the petroleum product with the lowest national stock sufficiency after petrol, with available stock expected to last only 13 days based on prevailing consumption patterns.

The regulator also disclosed that LPG consumption continues to outpace supply despite increased domestic contributions from gas processing plants and local refining operations.

Retail prices tracked by the NMDPRA for April ranged between N1,100 and N1,450 per kilogramme nationwide, although marketers say prevailing spot prices in some locations are now moving above those levels due to supply constraints.

The latest market tension comes despite growing domestic refining activity and increased local petroleum production across the downstream sector.

Analysts say sustained pressure on LPG supply could undermine Nigeria’s ongoing push toward cleaner household cooking energy adoption, particularly as millions of consumers continue shifting away from kerosene and firewood to cooking gas.

They further warned that unless supply volumes improve significantly through increased local production, imports, or more aggressive distribution into retail channels, the market may continue to experience elevated price volatility in the months ahead.

Global oil demand is now forecast to contract by 420,000 b/d year-over-year in 2026 to 104 million b/d, according to IEA, a downward revision of 1.3 million b/d from the agency’s pre-conflict forecast.

The steepest decline is expected in second-quarter 2026, when demand falls by 2.45 million b/d year-over-year, including declines of 930,000 b/d in OECD countries and 1.5 million b/d in non-OECD economies.

Petrochemical feedstocks and aviation demand have been hit hardest by the disruption. LPG/ethane and naphtha account for roughly half of the 2026 demand downgrade from pre-conflict levels, while jet fuel and kerosene demand weakened sharply as airlines reduced flights in response to higher fuel costs and disruptions across Gulf aviation hubs.

Global oil supply declined by another 1.8 million b/d in April to 95.1 million b/d, bringing total losses since February to 12.8 million b/d, according to IEA. Output from Gulf countries affected by the closure of the Strait of Hormuz remained 14.4 million b/d below pre-war levels. Higher production and exports from Atlantic Basin suppliers provided partial relief to the market. Assuming flows through the strait gradually resume beginning in June, global oil supply is forecast to decline by 3.9 million b/d on average in 2026 to 102.2 million b/d.

Global refinery crude throughputs are expected to plunge by 4.5 million b/d in second-quarter 2026 to 78.7 million b/d and decline by 1.6 million b/d to 82.3 million b/d for the full year as refiners contend with infrastructure damage, export restrictions, and lower feedstock availability. Despite lower refinery runs, refining margins remained at historically high levels, supported by record middle distillate crack spreads.

Meantime, disruptions in Middle Eastern LPG exports have sharply tightened global propane and butane markets. Gulf countries shipped nearly 1.5 million b/d of LPG through the Strait of Hormuz during 2025, but those flows slowed to just 270,000 b/d in April, according to Kpler data. Even with higher exports from Saudi Arabia’s Yanbu terminal and increased shipments from other exporters, the market still faces an estimated shortfall of 1 million b/d.

The US accounted for the largest increase in alternative LPG supply. According to Kpler data, US LPG exports surged by 450,000 b/d from 2025 averages to 2.7 million b/d, representing 69 per cent of total global seaborne LPG supply.

Observed global oil inventories fell by 129 million bbl in March and another 117 million bbl in April. Continued disruptions to seaborne trade through the Strait of Hormuz contributed to a 170 million bbl decline in on-land inventories during April, while oil on water increased by 53 million bbl. OECD on-land inventories fell by 146 million bbl during the month