Nigeria LPG Prices Hit ₦2,000/kg as Consumers Struggle With Rising Energy Costs

IBADAN, Nigeria — Cooking gas prices in Nigeria have continued to rise despite significant growth in domestic Liquefied Petroleum Gas (LPG) production and a sharp decline in imports, creating a paradox that is raising concerns among consumers, marketers, and energy stakeholders.

Recent data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that locally produced LPG now accounts for the majority of gas supplied to the Nigerian market. However, the increased availability of domestic gas has failed to translate into lower retail prices, with consumers in some parts of the country paying as much as ₦2,000 per kilogramme.

The situation has sparked questions about the effectiveness of ongoing efforts to boost local energy production and reduce Nigeria’s dependence on imported petroleum products.

Industry operators say the answer lies not only in production levels but also in the challenges associated with transportation, distribution, storage, logistics, and market dynamics that continue to influence prices across the value chain.

Domestic LPG Production Reaches New Highs

According to NMDPRA data, average daily domestic LPG supply ranged between 3,300 and 4,500 metric tonnes from April 2025 to April 2026.

The strongest performance was recorded in March and April 2026 when local supply reached approximately 4,500 tonnes per day.

The increase has been attributed to growing output from gas processing facilities, improved utilisation of Nigeria’s natural gas resources, and expanded refining activities, including supplies linked to the Dangote Petroleum Refinery.

At the same time, LPG imports have fallen significantly.

Imported volumes dropped to about 200 tonnes per day in March 2026 compared with 1,600 tonnes per day in November 2025 and 1,500 tonnes per day in December 2025.

The figures suggest Nigeria is making progress toward one of its long-standing energy objectives: reducing reliance on imported cooking gas and strengthening domestic supply chains.

Overall LPG availability ranged between 4,200 and 5,200 tonnes per day during the review period, reaching a peak of 5,200 tonnes per day in December 2025 before settling at around 4,500 tonnes by April 2026.

LPG Supply Snapshot

Period Domestic Supply (Tonnes/Day) Imports (Tonnes/Day) November 2025 ~3,800 1,600 December 2025 ~4,000 1,500 March 2026 4,500 200 April 2026 4,500 200

The numbers indicate that local production is increasingly replacing imported supplies, a development that would ordinarily be expected to support lower prices.

Yet the opposite is happening.

Why Is Cooking Gas Expensive in Nigeria?

Energy experts say higher production does not automatically lead to lower prices.

Several factors continue to exert pressure on LPG prices, including transportation costs, foreign exchange volatility, infrastructure limitations, storage constraints, distribution inefficiencies, and regional supply shortages.

Nigeria’s LPG value chain still relies heavily on road transportation to move products from production facilities and coastal terminals to inland markets.

The cost of transporting gas cylinders and bulk LPG across long distances has increased in recent years due to rising fuel prices, logistics expenses, and infrastructure challenges.

As a result, consumers in states far from major supply hubs often pay substantially higher prices than those located near production and storage facilities.

Marketers also point to intermittent supply disruptions in certain locations, which create temporary shortages and push prices higher.

Even when sufficient volumes exist nationally, bottlenecks in moving the product efficiently to retail outlets can create scarcity at the local level.

How Much Does Cooking Gas Cost in Nigeria Today?

Market surveys indicate that cooking gas prices vary across regions, but consumers in several locations now pay between ₦1,600 and ₦2,000 per kilogramme.

For many households, this translates into significantly higher refill costs.

Estimated refill costs include: Cylinder Size Estimated Refill Cost 3kg ₦4,800 – ₦6,000 5kg ₦8,000 – ₦10,000 6kg ₦9,600 – ₦12,000 12.5kg ₦20,000 – ₦25,000 25kg ₦40,000 – ₦50,000

The sharp increase has become a major concern for low-income households, food vendors, restaurants, bakeries, and small businesses that rely heavily on LPG for daily operations.

Many families report adjusting their cooking habits, reducing consumption, or switching to alternative fuels to cope with rising costs.

Households Return to Firewood and Charcoal

The continued rise in cooking gas prices is beginning to undermine Nigeria’s clean cooking agenda.

Over the past decade, government agencies, development organisations, and private-sector operators have invested heavily in promoting LPG adoption as a cleaner alternative to firewood, charcoal, and kerosene.

Those efforts contributed to increased LPG penetration across urban and semi-urban communities.

However, marketers warn that persistently high prices could reverse much of that progress.

As cooking gas becomes less affordable, some households are returning to traditional fuels despite the associated health and environmental risks.

Public health experts have repeatedly linked indoor air pollution from biomass fuels to respiratory illnesses, particularly among women and children.

Environmental advocates also warn that increased dependence on firewood could contribute to deforestation and environmental degradation.

Marketers Raise Alarm Over Rising Costs

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has expressed concern about the current market situation.

According to the association, marketers are paying between ₦25.2 million and ₦26.2 million for 20 metric tonnes of LPG depending on location.

The association argues that the rising wholesale cost of gas leaves marketers with little room to reduce retail prices.

NALPGAM has warned that continued increases could worsen economic hardship for millions of Nigerians already facing inflationary pressures and rising living costs.

The group also fears that sustained price increases could discourage investment in LPG infrastructure and slow efforts to expand access to clean cooking energy nationwide.

Why Hasn’t Local LPG Production Reduced Prices?

This remains the most frequently asked question among consumers.

Industry stakeholders say domestic production is only one part of the equation.

While higher production increases supply availability, retail prices are influenced by multiple factors, including:

• Distribution costs
• Transportation expenses
• Storage charges
• Exchange rate pressures
• Infrastructure limitations
• Financing costs
• Regional supply imbalances
• Market competition

In other words, producing more LPG does not automatically guarantee lower consumer prices unless the supporting infrastructure needed to move the product efficiently is also improved.

Experts argue that reducing logistics costs may ultimately have a greater impact on retail prices than production growth alone.

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Major Gas Infrastructure Projects Near Completion

There is optimism that several major gas infrastructure projects nearing completion could improve the situation.

Data from the Nigerian Gas Infrastructure Company indicate that the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project has surpassed 93 percent completion.

The OB3 River Niger Crossing project has also reached approximately 94 percent completion.

Meanwhile, the ELPS Midline Compressor Project is nearing completion, while expansion work on the Odidi-Warri project continues.

These projects are expected to strengthen gas transportation networks, improve connectivity between production centres and demand locations, and support broader domestic gas utilisation.

Industry analysts believe improved infrastructure could help reduce some of the bottlenecks currently affecting LPG distribution across the country.

Will Cooking Gas Prices Fall in 2026?

The outlook remains uncertain.

Analysts say prices could stabilise if domestic production continues to rise and infrastructure projects are completed on schedule.

Greater transportation capacity and improved market efficiency may help lower supply costs over time.

However, any decline is likely to depend on broader economic conditions, including exchange rate stability, inflation trends, transportation costs, and overall energy market dynamics.

For now, consumers are unlikely to see immediate relief despite improvements in local supply.

The Bigger Picture

Nigeria possesses one of Africa’s largest natural gas reserves, and the Federal Government has repeatedly identified gas as a strategic transition fuel capable of supporting economic growth, industrialisation, and energy security.

The recent increase in domestic LPG production demonstrates progress toward those goals.

Yet the experience of consumers highlights a critical challenge facing the sector: increasing production alone is not enough.

Without efficient transportation networks, adequate storage infrastructure, stronger distribution systems, and policies that address market bottlenecks, higher supply may not translate into lower prices.

As Nigeria pushes ahead with its gas expansion agenda, the success of that strategy will ultimately be measured not only by how much LPG is produced, but by whether ordinary households can afford to use it.

For millions of Nigerians struggling with rising living costs, the key question remains simple: when will increased local production finally lead to cheaper cooking gas?

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