The price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, has surged to as high as ₦2,500 per kilogramme across parts of Lagos and other major cities as supply disruptions and refinery shutdowns continue to pressure the market.
Findings show that the scarcity stems from a combination of factors — including a temporary halt in LPG production at the Dangote Refinery, limited storage capacity, and recent distribution bottlenecks following labour-related disruptions in the oil and gas sector.
Industry sources confirmed that major LPG marketers, including NIPCO Gas and 11Plc Gas, have resumed offtake from the Nigeria Liquefied Natural Gas (NLNG) facility in a bid to stabilise the market and avert further price escalation.
“Loading activities have resumed at NLNG, and we expect prices to start easing by the weekend,” a senior industry official said, adding that loading operations were being intensified to ensure supply reaches major depots in the South-West region.
Dangote Refinery Shutdown Deepens Market Volatility
Stakeholders explained that the few days of industrial action by oil sector unions forced the Dangote Refinery to suspend LPG production temporarily, worsening supply constraints.
A source within the LPG marketing network noted that the refinery’s focus on petrol and aviation fuel production, coupled with its limited gas storage infrastructure, has amplified short-term market volatility.
“Dangote Refinery does not have large storage capacity for LPG. Once production stops, there’s an immediate gap in the market,” the source said.
Depot operators, who had imported LPG before the refinery began local supply, reportedly incurred heavy losses when Dangote’s entry initially crashed prices, further discouraging imports. The renewed halt in local production has now reversed that trend with prices soaring sharply.
Consumers Feel the Heat
Across Lagos, several consumers lamented the sudden jump in prices. Many said they were forced to travel long distances in search of cheaper options.
At Agege, a consumer said she purchased gas at ₦2,500 per kilogramme, compared to ₦1,100 just a few months earlier. In Ikeja, prices ranged between ₦1,500 and ₦2,000 depending on location and supplier.
A gas retailer in Oba-Akran, Ikeja, Ajayi Abayomi, attributed the spike to limited supply and distribution disruptions.
“There’s no special reason other than restricted supply,” he explained. “People couldn’t lift products because of the refinery suspension and the crisis in Apapa. The gas we’re selling now came from Port Harcourt to support our Lagos operations.”
He added that the company typically sourced products from Dangote Petroleum Refinery & Petrochemicals or Apapa depots but that the temporary suspension of operations forced price adjustments across the supply chain.
Industry Outlook and Stabilisation Efforts
Officials say that stabilisation may take several days, as LPG loading and logistics differ significantly from petrol. On average, no more than 25 trucks can be loaded per night due to safety and documentation requirements.
Nonetheless, marketers expect some relief as NLNG ramps up domestic allocation and accelerates dispatch to critical urban centres.
“We expect prices to start moderating once more volumes circulate,” a source close to NLNG said. “The immediate goal is to restore supply to Lagos and the South-West before extending distribution nationwide.”
The NLNG, which in January 2022 committed to dedicating 100 percent of its butane and propane production to the domestic market under its Domestic LPG (DLPG) scheme, remains the single largest supplier of cooking gas in Nigeria.
The initiative is central to the Federal Government’s “Decade of Gas” programme aimed at boosting local consumption, reducing dependence on imports, and improving price stability.
However, industry operators caution that without adequate storage capacity, logistics infrastructure, and policy coordination, temporary disruptions like the current one will continue to trigger sharp price fluctuations.
Bottom Line
The ongoing supply gap has exposed the fragility of Nigeria’s domestic LPG value chain, where a single refinery shutdown can distort market balance and push prices beyond the reach of average consumers.
As NLNG intensifies supply and distribution efforts, industry stakeholders are urging the government to address the underlying structural bottlenecks — including storage limitations, pipeline connectivity, and sector regulation — to ensure sustainable price stability for Nigerian households.