Cooking Gas Prices Set To Crash? Marketers Reveal Why Costs Will Drop Naturally

Cooking gas marketers have attributed the recent spike in Liquefied Petroleum Gas (LPG) prices across Nigeria to increased demand, supply shortages, and seasonal factors, while expressing confidence that prices will eventually stabilize as supply improves.

According to industry stakeholders who spoke in separate interviews, the ongoing rainy season has significantly increased reliance on cooking gas as many households are unable to use firewood due to wet conditions. The resulting surge in demand, coupled with limited product availability, has placed upward pressure on prices in several parts of the country.

The development comes amid growing public concern over the rising cost of cooking gas, particularly in Abuja and surrounding communities, where prices have reportedly increased by between 40 and 66 percent within the last three weeks. The product, which previously sold for between ₦1,000 and ₦1,200 per kilogramme, is now retailing for between ₦1,400 and ₦2,000 per kilogramme, further straining household budgets already affected by the high cost of living.

The increase has intensified concerns over energy affordability, especially as many Nigerians continue to grapple with inflation and a national minimum wage of ₦70,000.

Speaking on the development, the spokesperson of the Oil and Gas Suppliers Association of Nigeria (NOGASA), Chinedu Ukadike, explained that the price increase is largely seasonal, noting that the rainy season reduces the availability and use of firewood, forcing more households to depend on LPG for cooking.

Ukadike maintained that the current market pressure is temporary and predicted that prices would decline naturally once supply improves and additional operators enter the market. He expressed optimism that more gas companies, including the Dangote Refinery, would boost supply and help restore market balance.

Similarly, the spokesperson of the Nigerian Independent Petroleum Company Plc (NIPCO), Taofeek Lawal, identified inadequate supply as the primary driver of the recent price surge. According to him, the quantity of LPG currently available is insufficient to meet the growing number of consumers, resulting in higher prices across the market.

Lawal stressed that expanding product availability remains the most effective solution, insisting that increasing supply nationwide would help meet demand and ease the financial burden on consumers.

Despite the current challenges, industry operators remain optimistic that improved supply and increased participation by more players in the LPG sector will gradually bring cooking gas prices down and provide much-needed relief to Nigerian households.