The price of a 12.5kg cylinder of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has surged to N25,000 this week, up from N17,500 the previous week. The steep increase is forcing Nigerians to adjust their household budgets, with some spending more than they anticipated to access this essential fuel.
Checks by Vanguard revealed that the current retail price of LPG ranges between N1,500 and N2,000 per kilogram, depending on the location. The spike is being attributed largely to disruptions in the distribution chain caused by industrial action from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr. Bassey Essien, explained that the strike affected the supply of LPG from major refineries, including Dangote Petroleum Refinery, which is currently the largest local supplier of cooking gas in the country.
He told Vanguard, “The crisis involving PENGASSAN scuttled distribution. Many dealers could not replenish their stocks during the period. What we are witnessing is a function of demand and supply. In practice, the demand for cooking gas is higher than supply. But supply would likely stabilise in the coming days, following resolution of the conflict.”
Market checks further revealed that several gas plants were temporarily shut down, particularly in Lagos and its environs, causing consumers to move from outlet to outlet in search of LPG. This scarcity has heightened public concern, with households and small businesses struggling to secure the commodity.
Recently, Aliko Dangote, President of the Dangote Group, disclosed that his refinery was producing 2,000 tonnes of LPG per day and planned to increase output further to meet the nation’s demand. Dangote also expressed concerns about Nigeria’s persistent energy poverty, emphasizing the need for greater access to clean cooking alternatives.
He stated, “If the distributors are not trying to bring prices down, we’ll go directly and sell to consumers so that people will now transit from firewood or kerosene to LPG for cooking.” This move underscores Dangote’s commitment to bridging Nigeria’s energy access gap and promoting cleaner cooking fuels.
Prior to Dangote Petroleum’s intervention, Nigeria’s LPG supply was largely reliant on NLNG Limited, which has played a central role in the domestic energy sector for over a decade. The company highlighted its ongoing commitment to providing clean and reliable energy to Nigerian homes.
In a statement obtained by Vanguard, NLNG Limited said, “At NLNG, we are committed to making clean, reliable energy accessible to every Nigerian home. Since 2007, under our Domestic LPG (DLPG) scheme, we have been supplying Butane – commonly known as cooking gas – to homes across Nigeria.”
The company added that it has steadily increased its domestic LPG volume over the years. “In 2022, we took a bold step and committed 100% of our Butane production to Nigeria’s domestic needs. Thanks to this commitment, all of our Butane output is now fully absorbed locally,” the statement said.
Analysts believe that the recent surge in LPG prices is largely a result of short-term supply shocks compounded by rising domestic demand. Cooking gas is increasingly preferred over traditional fuels like kerosene and firewood, not only for convenience but also for its environmental benefits.
Despite the current price hikes, experts suggest that the situation may stabilize in the coming weeks. “Once the industrial action is resolved, supply is expected to normalize. Prices may gradually return to pre-strike levels as production ramps up,” Essien explained.
In the meantime, consumers are seeking alternative sources, and some are reportedly resorting to small-scale local distributors, even at higher rates. This underscores the pressing need for a more robust supply chain and contingency plans to prevent future disruptions.
The government has also been urged to step in and facilitate a swift resolution of labor disputes that affect essential commodities. Analysts warn that prolonged strikes in the energy sector could have cascading effects on household budgets and small businesses across the country.
Meanwhile, Dangote Petroleum continues to explore direct-to-consumer strategies to ensure broader access to LPG. If successful, these initiatives could significantly reduce dependency on intermediaries and mitigate sudden price shocks.
NLNG’s commitment to the domestic market also highlights the potential for private sector-led solutions in addressing Nigeria’s energy challenges. By ensuring that Butane production is fully allocated to local needs, the company has helped maintain some level of stability in the market despite periodic disruptions.
The ongoing LPG price spike also brings attention to broader structural issues within Nigeria’s energy sector. High dependency on imports, inadequate distribution networks, and labor disputes contribute to periodic shortages that affect millions of households.
With the nation’s energy needs expected to grow in the coming years, both Dangote Petroleum and NLNG are well-positioned to play key roles in stabilizing the LPG market. Increased production capacity, combined with strategic distribution and direct-to-consumer initiatives, could significantly reduce the volatility currently experienced by Nigerians.
For now, households continue to bear the brunt of the supply disruptions, scrambling to secure cooking gas at inflated prices. As supply chains recover, experts hope the situation will normalize, restoring affordability and access to one of Nigeria’s most vital domestic fuels.
The recent LPG crisis demonstrates the delicate balance of supply and demand in Nigeria’s energy sector and underscores the critical need for collaboration between the government, private sector, and labor unions to ensure continuous availability of essential commodities.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
