The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has projected that retail cooking gas prices in Nigeria could fall significantly to between N900 and N1,100 per kilogram by the end of 2026 if the Federal Government successfully implements reforms aimed at improving supply and reducing costs across the sector.
Speaking in Lagos on Tuesday, NALPGAM President, Edu Inyang, said despite substantial growth in domestic production of Liquefied Petroleum Gas (LPG), persistent supply chain challenges and rising demand continue to keep prices elevated nationwide.
According to him, cooking gas which sold for between N900 and N1,000 per kilogram in April now costs between N2,000 and N2,500 per kilogram in several parts of Lagos, reflecting growing pressure on household energy costs.
Inyang disclosed that Dangote Petroleum Refinery and Nigeria LNG Limited (NLNG) accounted for about 87 per cent of Nigeria’s domestic LPG supply in 2025, but noted that Dangote Refinery later clarified that much of its LPG output was primarily designated for the production of higher-value petroleum products rather than direct supply to the domestic cooking gas market.
He explained that the reduction in local LPG allocation created supply disruptions that the industry was unprepared for, despite increasing domestic production levels. He further stated that many local producers continue to operate below installed capacity, leaving growing consumer demand unmet.
The NALPGAM president identified inadequate storage infrastructure, foreign exchange volatility, high transportation costs, and multiple supply chain charges as key drivers of rising retail prices.
He noted that LPG storage infrastructure remains concentrated mainly in Lagos, the Edo-Delta axis, and Port Harcourt, while northern parts of the country continue to suffer limited storage capacity, thereby increasing distribution costs nationwide.
Inyang also blamed market inefficiencies including speculative trading, excessive intermediary margins, and temporary hoarding for artificial scarcity and occasional price distortions within the market.
To improve affordability, he urged regulators to strengthen market surveillance, improve transparency in product allocation and pricing mechanisms, and enforce fair competition throughout the LPG value chain.
Among the reforms proposed by NALPGAM are the introduction of a domestic LPG supply obligation framework, tax incentives for infrastructure investment, removal of overlapping regulatory charges, and sustained investment in storage facilities, gas processing plants, transportation networks, strategic reserves, and cylinder distribution systems.
“With adequate domestic supply, improved infrastructure, exchange-rate stability, and supportive government policies, the industry can achieve a more affordable and stable pricing environment,” Inyang said, while cautioning that the projected price range remains an indicative target rather than a guarantee due to possible fluctuations in global energy prices and exchange rates.
In response to growing concerns over rising prices, the Federal Government has assured Nigerians that domestic LPG supply remains stable despite recent price increases.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, attributed the current increase in cooking gas prices to foreign exchange volatility, rising logistics costs, infrastructure limitations, and fluctuations in international LPG prices.
Ekpo said ongoing reforms by the government are focused on strengthening domestic gas availability and improving the resilience of Nigeria’s LPG market. He reiterated the government’s policy directing that all LPG produced within Nigeria should first be prioritised for domestic consumption before export, describing the policy as essential for reducing import dependence and improving local availability.
The minister also directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify collaboration with industry stakeholders to improve supply coordination and prevent disruptions within the market.
He assured Nigerians that producers were not exporting LPG volumes allocated for domestic consumption, stressing that regulatory safeguards remain in place to protect local supply.
Supporting concerns over rising costs, the National Bureau of Statistics (NBS) reported that the average price of refilling a 5kg cooking gas cylinder rose by 13.73 per cent from N7,655.73 in March to N8,706.93 in April. Similarly, the average cost of refilling a 12.5kg cylinder increased by 13.89 per cent from N19,652.83 in March to N22,382.20 in April.
A survey conducted in Lagos indicates that cooking gas currently sells between N1,600 and N2,500 per kilogram depending on location and retailer, placing the cost of refilling a 5kg cylinder between N8,000 and N11,000, while a 12.5kg cylinder now costs between N20,000 and N27,000.
