Key points
- Retail cooking gas prices could fall to between N900 and N1,100 per kilogram by the end of 2026 if the Federal Government implements reforms aimed at boosting supply and reducing distribution costs, according to NALPGAM.
- Rising demand and supply chain challenges, including inadequate storage facilities, high transport costs, and foreign exchange pressures, continue to keep prices high despite growth in local production.
- Supply disruptions emerged after the Dangote Refinery reduced its domestic LPG allocation to prioritize higher-value product manufacturing.
- The Federal Government maintains its directive that all locally produced LPG must be prioritized for domestic consumption before exports to improve local availability.
- Data from the National Bureau of Statistics showed that the average retail price for a 5kg cylinder refill rose by 13.73 per cent in April, while a 12.5kg refill increased by 13.89 per cent.
Main Story
Retail cooking gas prices could fall to between N900 and N1,100 per kilogram by the end of 2026 if the Federal Government implements reforms aimed at boosting supply and reducing distribution costs, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has said.
NALPGAM President, Edu Inyang, said despite growth in local LPG production, rising demand and supply chain challenges continue to keep prices high. He noted that inadequate storage facilities, high transport costs, foreign exchange pressures and multiple charges across the supply chain remain key drivers of retail prices.
According to him, supply disruptions emerged after the Dangote Refinery reduced the volume of LPG supplied to the domestic market, while several local producers are still operating below capacity. He said consumers would only benefit from increased local production if bottlenecks in storage, transportation and distribution are addressed, blaming speculative trading, excessive middlemen margins and product hoarding for occasional price distortions.
Inyang called for policies that prioritise domestic LPG supply, improve access to foreign exchange, expand storage infrastructure and eliminate overlapping regulatory charges to create a more affordable and stable market for consumers. Meanwhile, the Federal Government has assured Nigerians that LPG supply remains stable despite recent price increases. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, attributed the rise in prices to exchange rate volatility, logistics costs, infrastructure limitations and developments in the global LPG market.
He said the government remains committed to ensuring that LPG produced in Nigeria is first supplied to the domestic market before exports and has directed regulators to work more closely with industry operators to improve supply coordination. Recent figures from the National Bureau of Statistics showed that the average cost of refilling a 5kg cylinder rose by 13.73 per cent in April, while the average price of a 12.5kg refill increased by 13.89 per cent during the same period, as a market survey in Lagos shows cooking gas currently sells for between N1,600 and N2,200 per kilogram.
The Issues
- Eliminating bottlenecks in logistics, depot capacity, trucking, and market access to ensure consumers benefit from local production growth.
- Expanding limited storage infrastructure in Northern Nigeria to lower nationwide distribution and transportation costs.
- Enhancing market surveillance to curb speculative trading, excessive intermediary margins, and temporary product hoarding.
What’s Being Said
- Addressing distribution blockades, NALPGAM President Edu Inyang stated that local production growth is encouraging, but consumers will not fully benefit unless bottlenecks in logistics, depot capacity, trucking and market access are addressed.
- Reaffirming the state distribution mandate, Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo stated that the government directive requires all LPG produced in Nigeria should be prioritised for domestic consumption before exports, describing the policy as critical to improving local availability and reducing import dependence.
What’s Next
- The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will deepen its collaboration with sector operators to coordinate supply lines.
- Regulators will review NALPGAM’s proposed domestic LPG supply obligation framework and potential tax incentives for infrastructure investment.
- Marketers will monitor foreign exchange fluctuations and international market movements against the projected 2026 indicative pricing target.
Bottom Line
NALPGAM states that domestic cooking gas prices could drop to N900–N1,100 per kg by end-2026 if the government clears supply chain bottlenecks and enforces local allocation rules, despite current retail prices sitting between N1,600 and N2,200 per kg.
