KEY POINTS
- LPG supply rose to 5.332 KT/D in July.
- Lagos cooking gas prices fell nearly 30%.
- Domestic sources provided 82% of total supply.
Nigeria’s cooking gas market recorded a strong recovery in July 2026, as daily Liquefied Petroleum Gas, LPG, supply increased and retail prices fell sharply in several major cities.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s July sector factsheet showed that total LPG supply rose to 5.332 kilotonnes per day in July, up from 5.164 kilotonnes per day in June.
The increase brought supply well above the country’s 3.9 kilotonnes per day consumption benchmark and helped ease the severe price pressure witnessed in the market in previous months.
Domestic production remained the main source of cooking gas supply during the month, accounting for 4.373 kilotonnes per day, or 82% of total supply. Imports contributed 0.958 kilotonnes per day, representing the remaining 18%.
The latest figures point to a stronger domestic contribution to Nigeria’s LPG market, although imports continue to play a role in balancing supply and meeting consumer demand.
The NLNG/Seplat consortium was the largest individual supplier, contributing 2.031 kilotonnes per day, equivalent to 38.1% of total supply through vessel deliveries.
Dangote Refinery supplied another 0.829 kilotonnes per day, or 15.5%, while other domestic processing plants contributed 1.513 kilotonnes per day, representing 28.4% of total volumes.
LPG consumption continues to grow
Daily LPG consumption rose to about 4.4 kilotonnes in July, compared with 4.1 kilotonnes per day in June. The market has now recorded demand above the benchmark for two consecutive months, suggesting that consumption is gradually recovering despite the price shocks recorded earlier in the year.
July’s supply of 5.332 kilotonnes per day was also comfortably above consumption, helping to improve product availability across the country.
The stronger supply position represents a significant change from the disruptions experienced in April and May, when shortages and tight market conditions contributed to steep price increases.
The improvement in supply was reflected in retail prices. In Lagos, the average price of LPG fell to about N1,235 per kilogram in July from approximately N1,776 per kilogram in June, representing a decline of nearly 30%.
Prices also fell in several other major cities. Ibadan recorded a drop from N1,775 to N1,540 per kilogram, while Calabar declined from N1,550 to N1,410.
Enugu’s average price fell from N1,625 to N1,550 per kilogram, while Kano recorded a smaller reduction from N1,575 to N1,550.
Sokoto was the only city among those surveyed to record an increase, with the average price rising slightly from N1,550 to N1,575 per kilogram.
The reductions came after LPG prices had surged to as much as N2,500 per kilogram in some parts of Nigeria by the middle of June.
The price correction followed a series of interventions aimed at improving LPG availability. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, directed marketers in June to increase imports and instructed the NMDPRA to intensify engagement with producers, importers and marketers.
An emergency meeting involving key industry stakeholders was subsequently held in Abuja as the government sought to address supply constraints and prevent further price escalation.
The country’s LPG supply sufficiency reportedly improved from about 11 days to 22 days following the interventions.
That improvement was reflected in July’s stronger supply figures and the subsequent decline in retail prices. Despite the improvement, the LPG market remains exposed to supply volatility.
Domestic supply had fallen by roughly 10% month-on-month in June, showing that production levels can still fluctuate significantly.
Another challenge is that some Nigerian gas production remains tied to export-oriented arrangements, limiting the volume that can be directed toward the domestic LPG market.
The continued expansion of gas production, aggregation and processing capacity will therefore be important for maintaining supply growth and reducing exposure to sudden price increases.
With NLNG/Seplat and Dangote Refinery now accounting for more than half of total supply, the industry is becoming increasingly anchored by major domestic and locally processed sources.
If additional gas feedstock and processing capacity come on stream, Nigeria could further strengthen domestic LPG availability and provide greater stability for consumers.
