The Nigerian Liquefied Petroleum Gas (LPG) market is showing fresh signs of strain as fewer depots report product availability, raising concerns that households and businesses could soon face another round of price hikes.
Shrinking Depot Availability
According to data tracked by Petroleumprice.ng, only three depots Navgas, Stockgap, and Ardova currently have LPG available across the country. Navgas and Stockgap are selling at ₦870 per kilogram, while Ardova is slightly lower at ₦850/kg.
This is a worrying signal, considering Nigeria has over 20 LPG depots nationwide. The absence of supply from the majority of these depots suggests distribution gaps, reduced import volumes, or potential logistical disruptions in the value chain.
Market Ripples and Price Outlook
Industry experts argue that this supply squeeze could trigger upward adjustments in retail prices, especially as demand for cooking gas typically spikes toward the last quarter of the year. For households already grappling with high inflation and rising energy costs, an LPG hike would further tighten disposable incomes.
From a market perspective, limited depot activity reduces competition, allowing active players to dictate terms. This dynamic creates a cost-push inflation effect, where retailers adjust pump prices to align with higher ex-depot rates.
Why the Shortage Matters
LPG has become Nigeria’s cleaner alternative to firewood, kerosene, and charcoal, with government policies encouraging adoption to cut emissions and protect forests. However, the frequent supply shortages undermine this transition, leaving many families caught between higher prices and reverting to less sustainable fuel options.
Analysts suggest that the lack of consistent investment in local LPG infrastructure processing plants, storage facilities, and distribution networks continues to make the sector heavily reliant on imports. The global volatility in gas prices, combined with foreign exchange pressures, further exposes Nigerian consumers to market shocks.
What Lies Ahead
Unless supply stabilizes and more depots come onstream in the coming weeks, Nigerians may see LPG prices surge again in the retail market. For businesses in the hospitality, food, and small-scale manufacturing sectors that depend heavily on LPG, the ripple effect could mean higher operational costs, which might trickle down to consumers.
The coming weeks will determine whether the current shortage is a temporary disruption or the start of another prolonged cycle of scarcity and price inflation.
