Cooking Gas Prices Remain High Despite FG Intervention

Two weeks after the Federal Government intervened in the liquefied petroleum gas market, marketers have said cooking gas prices remain above normal levels despite improved supply and reduced tension across the market.

Consumers in different parts of the country are still paying between ₦1,300 and ₦1,650 for one kilogramme of cooking gas, even though product availability has improved following an emergency stakeholders’ meeting convened by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.

The meeting was held in Abuja on June 22 in response to severe supply shortages and a sharp rise in retail prices.

Before the scarcity that began in May, cooking gas sold for less than ₦1,000 per kilogramme in many locations. The price later rose to as much as ₦2,500 per kilogramme in some areas in June.

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, in an interview with Punch, said the government’s intervention had restored some stability to the market but had not made the product affordable for millions of households.

Inyang said, “Two weeks after the emergency stakeholders’ meeting convened in Abuja by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, Nigeria’s LPG market has shown early signs of stabilisation, but the crisis is far from over.

“The meeting succeeded in calming market panic and improving supply, yet it has not translated into a significant reduction in retail cooking gas prices for consumers.”

Inyang had earlier disclosed that cooking gas was selling for between ₦1,100 and ₦1,350 per kilogramme in Lagos, Ibadan and Abeokuta.

In Benin City, Port Harcourt and Warri, prices ranged from ₦1,150 to ₦1,400 per kilogramme, while consumers in Onitsha and Enugu paid between ₦1,200 and ₦1,450.

The product sold for between ₦1,250 and ₦1,500 per kilogramme in Abuja, while prices in Kano and Kaduna ranged from ₦1,300 to ₦1,550.

Maiduguri and some parts of the North-East recorded the highest rates, with consumers paying between ₦1,350 and ₦1,650 per kilogramme.

Supply Shortage Triggered Price Surge

Inyang said the emergency meeting became necessary after terminal prices rose sharply, pushing retail rates to between ₦1,800 and ₦2,500 per kilogramme in many cities.

He attributed the increase to severe supply shortages, rising depot and landing costs, higher transportation expenses, panic buying and speculative stocking by some operators.

According to him, the development threatened the Federal Government’s Decade of Gas initiative, as many households abandoned cooking gas and returned to firewood and charcoal.

He, however, said one of the major gains from the Abuja meeting was a considerable improvement in product availability nationwide.

Inyang stated, “National LPG supply sufficiency increased from approximately 11 days to 22 days. Average daily supply increased from about 4,262 metric tonnes in May to over 5,000 metric tonnes in June.”

The marketers’ president explained that the immediate outcome of the intervention was improved availability rather than a major reduction in prices.

He further stated, “The immediate impact has been greater product availability rather than lower prices. Across major markets, product scarcity has reduced considerably. Panic buying by marketers has eased. Most filling plants now have access to supply. Depot prices have become relatively more stable compared to the volatility experienced before the meeting.” 

Inyang noted that retail prices had stopped rising at the previous pace but remained high because several underlying factors had not been addressed.

“However, retail prices remain stubbornly high. While prices have stopped escalating at the previous pace, consumers are yet to experience meaningful relief because international LPG prices remain elevated, foreign exchange costs continue to increase import expenses, transportation and inland distribution costs remain high, domestic production is still insufficient to fully satisfy national demand, and market competition has not yet driven prices downward,” he added.

Households Return To Cheaper Fuels

Inyang said many households were still rationing cooking gas or switching to cheaper alternatives despite the improvement in supply.

He described the Abuja meeting as an important first step rather than a complete resolution of the market crisis.

Inyang stated, “From an industry perspective, the emergency meeting should be viewed as a successful first intervention rather than a complete solution.

“The meeting achieved three immediate objectives. It restored confidence within the supply chain, improved communication between government and industry operators, and prevented a deeper supply disruption that could have driven prices even higher.”

He added that the intervention had not resolved structural challenges such as inadequate domestic production, poor infrastructure, distribution bottlenecks, foreign exchange exposure and pricing distortions.

Looking ahead, Inyang expressed optimism that consistent implementation of the resolutions reached at the Abuja meeting could gradually moderate prices.

“If the commitments made during the Abuja meeting are implemented consistently over the coming weeks, Nigeria could experience improved nationwide product availability, more stable depot prices, gradual moderation of retail prices and renewed consumer confidence in LPG,” he said.

He, however, warned that the market could return to volatility if implementation slowed or domestic supply failed to increase.

He added, “The Abuja emergency stakeholders’ meeting has stabilised the LPG market without yet making cooking gas affordable.

“Supply conditions have improved markedly, and fears of widespread shortages have receded. Yet, for millions of Nigerian households, the true measure of success will be a sustained reduction in the price of cooking gas.

“Until structural supply, logistics and pricing challenges are resolved, affordability will remain the industry’s biggest concern, despite the positive momentum generated by the minister’s intervention.”