KEY POINTS
- NALPGAM projects cooking gas prices could drop to ₦900–₦1,100/kg by end of 2026 if supply and infrastructure reforms are implemented.
- Despite rising local production, LPG prices remain high (₦2,000–₦2,500/kg) due to distribution bottlenecks, FX issues, and storage limitations.
- Government and industry stakeholders say reforms targeting domestic supply prioritisation, infrastructure expansion, and pricing transparency are underway.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has projected that retail cooking gas prices may fall to between ₦900 and ₦1,100 per kilogram by the end of 2026 if key government reforms are implemented to improve supply and reduce costs.
NALPGAM President, Edu Inyang, said LPG prices, which sold for about ₦900–₦1,000/kg in April, have risen sharply to between ₦2,000 and ₦2,500/kg in many parts of Lagos, driven by supply constraints and distribution challenges.
Dangote Refinery, NLNG dominate supply but face allocation issues
Inyang noted that Dangote Refinery and Nigeria LNG (NLNG) supplied about 87% of domestic LPG in 2025, but supply disruptions occurred after Dangote reportedly reduced local allocation in favour of higher-value products.
He identified poor storage capacity, high transport costs, foreign exchange pressure, and multiple handling charges as key factors pushing up retail prices nationwide.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said government reforms are ongoing to strengthen domestic gas supply, improve infrastructure, and ensure LPG meant for local use is prioritised.
Data from the National Bureau of Statistics (NBS) shows steady increases in cylinder refill costs, with a 12.5kg cylinder now costing over ₦22,000 on average, forcing many households to adjust consumption patterns.
