For the first time in months, Nigerian households are catching a break as the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has dropped to its lowest level in six months. This development comes amid concerns over the rising cost of living, as many Nigerians have struggled with skyrocketing energy prices in recent months.
As of February 2025, refilling a 12.5kg cylinder now costs an average of ₦16,250, marking a 13.3% decline from the ₦18,750 recorded in December 2024. This price reduction is a relief for families who have been forced to cut back on gas usage or switch to alternative fuels like firewood and charcoal, despite their negative health and environmental effects.
LPG Depot Prices Show Signs of Stability
A closer look at depot prices in Lagos and Warri reveals some movement in pricing over the past few days. While Lagos prices have seen a slight decrease, Warri depot prices have remained stable.
LPG Depot Prices (per kg)
4th February 2025
- Lagos:
- Dangote – ₦935
- Rainoil – ₦970
- Nipco – ₦980
- Warri:
- Prudent Oghara – ₦1,115
- Matrix Warri – ₦1,125
7th February 2025
- Lagos:
- Dangote – ₦935 (no change)
- Rainoil – ₦960 (₦10 decrease)
- Nipco – ₦950 (₦30 decrease)
- Warri:
- Prudent Oghara – ₦1,115 (no change)
- Matrix Warri – ₦1,125 (no change)
While Lagos depots have seen slight price reductions, Warri depot prices have remained unchanged over the past three days. This suggests that while there are improvements in supply and pricing in some parts of the country, others are still dealing with challenges such as transportation costs and limited availability of locally produced LPG.
Comparing Depot Prices to Retail Prices
Despite the reductions at the depot level, the retail price of LPG in filling stations remains significantly higher. According to the latest market trends:
- Retail prices in some areas are still between ₦1,500 and ₦1,600 per kg
- This means that refilling a 12.5kg cylinder can cost anywhere from ₦18,750 to ₦20,000
- The gap between depot prices and retail prices raises concerns about supply chain inefficiencies and distributor markups, preventing end consumers from fully benefitting from the price drop
What’s Behind the Price Drop?
Experts say that several factors are contributing to the recent decline in LPG prices:
- Increased local production: The rise in domestic supply, particularly from the Dangote Refinery, has helped stabilise prices.
- A more stable forex market: LPG importers are seeing reduced volatility in the dollar exchange rate, which has historically affected gas prices.
- Government initiatives to boost LPG adoption: Authorities continue to push for higher domestic consumption as part of the Decade of Gas initiative.
Speaking on the development, Olatunbosun Oladapo, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), noted that efforts to promote affordability are gradually yielding results. “The market is adjusting, and we hope this decline continues to give Nigerians some breathing space,” he said.
Challenges and the Road Ahead
Despite this price drop, some key issues remain:
- Regional price differences: Urban centres like Lagos, Abuja, and Port Harcourt enjoy lower prices, while many rural areas still experience high costs due to transportation and distribution challenges.
- Retail markups: While depot prices are declining, middlemen and retailers are slow to adjust their pricing, meaning many consumers are not yet seeing the full benefits.
- Uncertain long-term stability: While increased domestic production is a positive sign, external factors such as global energy prices and forex fluctuations could still affect LPG pricing in Nigeria.
Will Prices Continue to Drop?
With the Dangote Refinery ramping up LPG supply and more local producers stepping up production, there is cautious optimism that gas prices could remain stable or decline further. However, much depends on government policies, market dynamics, and how quickly retail prices align with depot price reductions.
For now, Nigerians can breathe a sigh of relief as LPG prices become more affordable. But many will be watching closely to see if this is just a temporary drop or the start of a sustained trend towards cheaper, more accessible cooking gas.
