By YUNUS YUSUF

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) says retail cooking gas prices could fall to between N900 and N1,100 per kilogram by end-2026 if the Federal Government implements reforms to boost supply and cut costs.

The President of NALPGAM, Mr Edu Inyang, made the projection in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.

According to him, although Nigeria has recorded significant growth in local Liquified Petroleum Gas (LPG) production, rising demand and persistent supply chain challenges continue to keep prices high.

NAN reports that cooking gas, which sold for between N900 and N1,000 per kilogram in April, now costs between N2,000 and N2,500 per kilogram in many parts oof Lagos metropolis.

Inyang said Dangote Refinery and Nigeria LNG (NLNG) supplied about 87 per cent of Nigeria’s domestic LPG market in 2025.

He, however, noted that Dangote Refinery later clarified that its LPG output was primarily intended for the production of higher-value products rather than the local cooking gas market.

“As a result, the refinery significantly reduced its allocation to the domestic LPG market, creating supply disruptions that the industry was not prepared for,” he said.

He explained that while local LPG production had increased, many producers were still operating below installed capacity, leaving growing consumer demand unmet.

According to Inyang, inadequate storage facilities, high transportation costs, foreign exchange challenges and multiple handling charges within the supply chain are major factors driving up retail prices.

He noted that LPG storage infrastructure remained concentrated in Lagos, the Edo/Delta axis and Port Harcourt, with limited facilities in Northern Nigeria, increasing distribution costs nationwide.

“Local production growth is encouraging, but consumers will not fully benefit unless bottlenecks in logistics, depot capacity, trucking and market access are addressed,” he said.

The NALPGAM president also blamed market inefficiencies such as speculative trading, excessive intermediary margins and temporary product hoarding for occasional price distortions and artificial scarcity.

To improve affordability, he urged regulators to strengthen market surveillance, improve transparency in product allocation and pricing, and enforce fair competition across the LPG value chain.

For short-term price stability, Inyang recommended prioritising domestic LPG supply ahead of exports, improving access to foreign exchange, reducing regulatory bottlenecks and expanding clean cooking support programmes for low-income households.

He also called for sustained investment in storage facilities, gas processing plants, LPG terminals, transportation networks, strategic reserves and cylinder distribution systems.

Among the reforms proposed by NALPGAM are a domestic LPG supply obligation framework, tax incentives for infrastructure investment and the elimination of overlapping regulatory charges.

“With adequate domestic supply, improved infrastructure, exchange-rate stability and supportive government policies, the industry can achieve a more affordable and stable pricing environment,” Inyang said.

He, however, cautioned that the projected price range should be seen as an indicative target rather than a guarantee, as global energy prices and exchange-rate fluctuations would continue to influence market outcomes.

Meanwhile, the Federal Government has assured Nigerians that LPG supply remained stable in spite of the recent increase in cooking gas prices.

The Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, attributed the price hike to foreign exchange volatility, rising logistics costs, infrastructure limitations and movements in international LPG prices.

He said ongoing reforms were aimed at strengthening domestic gas availability and improving the resilience of the LPG market.

Ekpo reiterated the government’s directive that 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.

The minister also directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to deepen collaboration with industry stakeholders to improve supply coordination and prevent market disruptions.

He assured Nigerians that producers were not exporting LPG volumes designated for the domestic market, adding that regulatory safeguards remained in place to protect local supply.

According to Ekpo, the long-term outlook for Nigeria’s LPG market remains positive as the government continues to expand gas infrastructure, boost local production and improve access to clean cooking energy.

The development comes as the National Bureau of Statistics (NBS) reported that the average price of a 5kg cylinder refill rose from N7,655.73 in March to N8,706.93 in April, representing a 13.73 per cent increase.

The NBS also reported that the average retail price for refilling a 12.5kg cylinder increased by 13.89 per cent, from N19,652.83 in March to N22,382.20 in April.

A NAN survey in Lagos shows that cooking gas currently sells for between N1,600 and N2,200 per kilogram, depending on location and retailer.

At those rates, refilling a 5kg cylinder costs between N8,000 and N11,000, while a 12.5kg cylinder costs between N20,000 and N27,000.

The high cost of cooking gas has compelled many households to adjust their lifestyles and dietary habits.

Prices continue to vary across the country due to supply constraints and logistics costs. (NAN)

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