KEY POINTS
- Cooking gas prices surge to ₦25,000 for a 12.5kg cylinder as supply tightens amid PENGASSAN’s industrial action.
- Dangote Refinery ramps up LPG output to offset shortages, producing 2,000 tonnes daily.
- NLNG reaffirms commitment to domestic supply but warns of distribution bottlenecks.
Nigerian households are reeling under a worsening shortage of cooking gas as the price of a 12.5-kilogram cylinder of Liquefied Petroleum Gas (LPG) has climbed to ₦25,000 this week — a sharp increase from ₦17,500 barely seven days ago — adding fresh strain to already stretched household budgets.
Across major cities including Lagos, Abuja, and Port Harcourt, residents have begun scouring gas depots and roadside vendors for scarce supplies, with 1 kilogram now retailing between ₦1,500 and ₦2,000 depending on the location. For many families, the price spike is forcing a reluctant return to firewood and kerosene — cheaper but environmentally damaging alternatives.
According to the Executive Secretary of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, the crisis stems from disruptions caused by the recent strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The strike temporarily halted operations at the Dangote Petroleum Refinery, currently the country’s largest local supplier of LPG.
“The situation we’re witnessing is a direct result of interrupted distribution during the industrial action,” Essien said. “Demand has continued to outpace supply, but we expect some level of stability once the dispute is fully resolved and deliveries resume.”
Supply Chains Under Pressure
The shutdowns have led to empty cylinders and shuttered gas plants across parts of Lagos and Ogun states, where many retail stations reported running out of stock over the weekend. Some consumers said they had to travel several kilometers in search of refills.
Industry sources say the shortage underscores Nigeria’s lingering dependence on a handful of domestic producers and the fragility of its distribution network. Although the Dangote Refinery currently produces about 2,000 tonnes of LPG daily, the volume still falls short of meeting the country’s surging demand.
Aliko Dangote, president of Dangote Group, said the refinery is working to expand capacity further and could soon begin selling directly to consumers to help curb middlemen-driven price hikes. “If distributors can’t bring prices down, we’ll go directly to the market,” he said, stressing the need to help households transition from firewood and kerosene to cleaner fuels.
Before Dangote’s entry into the market, Nigeria LNG Limited (NLNG) was the dominant domestic supplier of LPG. The company reiterated its commitment to the local market, highlighting its decision since 2022 to dedicate 100% of its butane production — the key component of cooking gas — to Nigerian homes.
“Over the years, we have expanded our domestic LPG scheme, supplying through approved coastal terminals in Lagos and Rivers State, with more in Delta under review,” NLNG said in a statement. “We’ve also deployed a dedicated vessel to ensure steady and reliable supply.”
Despite these efforts, distribution challenges persist, compounded by rising global shipping costs and the weakening naira, which have further inflated retail prices.
Economists warn that the current situation may worsen inflationary pressures and deepen Nigeria’s energy poverty, as millions of low-income households struggle to afford clean cooking alternatives.
As supply begins to normalize following the resolution of the PENGASSAN standoff, market observers expect prices to cool slightly — but not before leaving a harsh reminder of how exposed Nigeria’s energy supply chains remain to labor disputes and infrastructural bottlenecks.
