• Nigeria’s LPG market sees rising local production, yet prices continue to soar for households
• Domestic supply reached 87% of consumption in 2025, marking significant self-reliance
• High transportation costs and distribution issues prevent price relief for struggling families

Nigeria’s cooking gas market is undergoing a quiet but profound shift. Imports are shrinking, local production is rising, yet households are paying more to cook their meals.

Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) show that Nigeria consumed about 52,800 metric tonnes of Liquefied Petroleum Gas (LPG) in 2025.

Of this, domestic marketers supplied roughly 45,800 metric tonnes, while imports accounted for just 7,100 metric tonnes, or about 13 per cent of total consumption.

The figures underscore Nigeria’s growing self-reliance in cooking gas. But they also expose a troubling paradox: prices continue to soar.

Local supply dominates, imports keep shrinking

According to the regulator, domestic LPG accounted for about 87 per cent of national consumption in 2025, with imports steadily declining as local production capacity expands.

Nigeria’s LPG market, once heavily dependent on imported cargoes, has been reshaped by investments in gas processing plants and refineries.

Facilities such as NLNG Trains 1–6, Dangote Petrochemical Refinery, Gbaran-Ubie, Soku, and Obile gas plants now produce the bulk of the country’s cooking gas.

Utilisation rates across these plants range from 53 per cent to over 100 per cent, indicating intense pressure on existing infrastructure.

In theory, this surge in local output should have eased prices. In reality, the opposite has happened.

Households feel the price shock

Market data show that the average price of a 12.5kg cylinder rose from ₦17,432 in January 2025 to ₦20,609 by July.

By October and November 2025, prices surged sharply, with LPG retailing at over ₦2,000 per kilogram in many locations, depending on outlet and distance from supply hubs.

For low- and middle-income households that rely on LPG as a cleaner alternative to firewood and kerosene, the increase has been punishing. Cooking gas has become one of the fastest-rising household expenses, eating into already stretched budgets.

Why prices keep rising despite abundant gas

Industry players point to several structural issues. High transportation costs, limited storage infrastructure, distribution bottlenecks, and pricing pressures linked to imports still influence the market, even though imports are no longer dominant.

Because LPG distribution depends heavily on trucking across long distances, price differences between coastal and inland states remain wide.

Marketers say these logistics costs, combined with seasonal demand spikes, continue to push up retail prices regardless of domestic production levels.

Month-by-month: How supply shifted in 2025

A breakdown of monthly data highlights how strongly domestic supply underpinned the market.

In January, domestic sources provided 80 per cent of supply. By February, that share rose to 95 per cent, and in March, Nigeria relied entirely on local production, with zero imports.

From April through October, domestic LPG consistently accounted for over 88 per cent of supply, peaking at nearly 95 per cent in several months. Imports mainly played a supporting role, filling gaps when demand rose or output dipped.

A notable shift occurred in November and December, when imports jumped to 32 per cent and 29 per cent respectively, reflecting increased reliance on foreign cargoes during peak demand.

Self-reliance grows, relief remains elusive

Overall, domestic LPG supplied between 66 and 100 per cent of monthly demand in 2025, while imports ranged from 0 to 32 per cent.

The data confirm Nigeria’s progress toward energy self-sufficiency in cooking gas, which has led to variation in prices.

Yet for millions of households, that progress has not translated into lower prices. Until transport costs fall, storage expands, and distribution improves, cooking gas may remain painfully expensive, even in a market dominated by local supply.

Local production drives down prices

Meanwhile, a prior report by Legit.ng disclosed that LPG prices have been on a consistent decline due to local production.

The commodity is recording a noticeable price drop across major Nigerian cities, offering much-needed relief to households already stretched by rising living costs.

Findings by Legit.ng show that prices have eased in Lagos, Abuja, and other urban centres, with dealers attributing the decline to improved product availability and relative stability in the foreign exchange market.

Dangote Refinery hikes cooking gas prices

Legit.ng earlier reported that the cost of cooking gas has climbed again across Nigeria after the Dangote Refinery raised its ex-refinery price.

The increase has triggered a new round of price adjustments by major gas retailers and plants in cities such as Lagos, Abuja, Kano and Port Harcourt.

The change comes only a day after the refinery reduced petrol prices, a move that generated widespread attention in the downstream petroleum sector.

Source: Legit.ng