Marketers Turn to Massive LPG Imports as Cooking Gas Prices Surge 140% Across Nigeria

Cooking gas marketers in Nigeria are preparing for large-scale imports of Liquefied Petroleum Gas (LPG) following a sharp increase in prices and growing supply shortages across the country.

Industry stakeholders disclosed that the price of cooking gas has risen by about 140 per cent in many parts of Nigeria, climbing from an average of N1,000 per kilogramme in January and February to as much as N2,400 per kilogramme in recent weeks.

Sources within the industry attributed the development to supply challenges and reduced volumes available in the domestic market. They explained that local production has not been sufficient to meet increasing demand, prompting regulators to approve additional import licences for marketers.

According to industry insiders, the recent decline in LPG supply from the Dangote Petroleum Refinery is linked to increased internal utilisation of gas to support expanded petroleum production operations rather than exports, as widely speculated.

The refinery is said to have increased production capacity to approximately 700,000 barrels per day, resulting in greater internal consumption of LPG and reduced volumes available for domestic distribution.

To address the shortage, marketers have begun arrangements to import larger quantities of cooking gas into the country. The move is expected to boost supply, stabilise the market and eventually reduce prices for consumers.

The spokesperson for the Minister of State for Petroleum Resources (Gas), Louis Ibah, said the Federal Government is actively addressing concerns surrounding LPG availability. He noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority has been directed to work closely with stakeholders to ensure uninterrupted supply.

Ibah added that marketers have committed to importing significant volumes of LPG to bridge the supply gap, while the Dangote refinery has also been encouraged to prioritise domestic allocation of cooking gas.

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, confirmed that depot owners are making arrangements to import LPG in order to ease the current scarcity.

Despite assurances from government officials, many retailers say cooking gas remains scarce in several locations, forcing some households to return to the use of charcoal and firewood for cooking.

Stakeholders remain optimistic that increased imports and improved supply coordination will help restore stability to the LPG market and bring relief to consumers facing rising energy costs.