KEY POINTS
- Nigeria’s monthly cooking gas spending is projected to rise to ₦296.3 billion due to a 41.4% price increase.
- Supply shortages, falling imports, and global market disruptions are driving the price surge.
- Despite government interventions, LPG prices remain high, with limited short-term relief expected.
Nigerian households are projected to spend about ₦296.3 billion on cooking gas in June 2026 as a worsening Liquefied Petroleum Gas, LPG, supply crisis pushes prices sharply higher.
The average retail price of LPG has risen from about ₦1,450 per kilogramme to approximately ₦2,050, representing a 41.4 per cent increase in a short period.
The surge is raising fresh concerns about affordability and energy access for millions of families who depend on gas for daily cooking.
Industry data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that about 4.8 million kilogrammes of LPG were consumed daily in April, translating to roughly ₦209.5 billion in monthly spending at the earlier price level.
With current prices now around ₦2,050 per kilogramme, total national spending is expected to rise by an additional ₦88 billion this month.
Stakeholders say the crisis is being driven by a sharp decline in imports, with shipments dropping significantly in recent months, forcing Nigeria to depend more heavily on domestic supply that is not sufficient to meet demand.
Global Market Pressures Worsen Domestic Situation
Experts say the price increase is also linked to global supply disruptions, rising freight costs, and shifting international demand patterns.
According to industry players, geopolitical tensions have altered LPG trade routes, increasing competition for supplies and pushing up global premiums.
Nigeria, which imports about 40 per cent of its annual LPG consumption of roughly 1.6 million metric tonnes, has been particularly affected due to its reliance on imported supply to bridge local production gaps.
Local supply from facilities such as the Nigeria LNG Limited (NLNG) has remained crucial, but recent output constraints have further tightened availability in the market.
Some marketers have also reduced import activity due to unfavourable price differentials, worsening shortages at retail level.
Industry operators note that earlier price crashes triggered by large-volume releases from major players briefly distorted the market, but conditions have since reversed.
Government interventions such as the removal of VAT on LPG and import duties on gas cylinders have helped ease some pressure but have not significantly reduced retail prices.
Stakeholders expect slight relief if additional LPG cargoes arrive in the country in the coming weeks, though they warn that structural supply challenges may persist.
