LPG Gains Market Share as Kerosene Goes into Extinction

In a significant shift in Nigeria’s energy landscape, Liquefied Petroleum Gas (LPG), commonly known as cooking gas, is rapidly gaining market share as kerosene becomes increasingly scarce and expensive. With kerosene prices soaring to as high as ₦1,300 per litre in some filling stations and its availability dwindling, Nigerian households and businesses are turning to LPG as a more affordable, cleaner, and efficient alternative.

This transition marks a pivotal moment in Nigeria’s energy consumption patterns, driven by necessity and supported by government policies promoting cleaner energy sources. However, the shift also highlights the challenges faced by low-income households and the urgent need for inclusive energy solutions.

The Decline of Kerosene: A Staple Fading Away

Kerosene, once a household staple for cooking and lighting, is fast becoming a relic of the past. Its scarcity and rising prices have made it unaffordable for many Nigerians. According to Petroleumprice.ng, here’s a breakdown of current kerosene prices at major depots:

• Dangote: ₦1,050 per litre
• Rainoil: ₦1,070 per litre
• Duport: ₦1,075 per litre
• Matrix: ₦1,250 per litre
• African Terminal: ₦1,075 per litre

In retail markets, prices are even higher, with some stations selling kerosene for as much as ₦1,300 per litre. This price surge is attributed to several factors:

1. Refinery Challenges: Nigeria’s refineries have been operating below capacity for years, forcing the country to rely on imported kerosene. Global supply chain disruptions and foreign exchange shortages have further constrained supply.
2. Smuggling and Diversion: Kerosene is often diverted to neighbouring countries or mixed with diesel, reducing the quantity available for domestic use.
3. Government Policies: The federal government has been actively promoting the use of LPG as a cleaner alternative, leading to reduced focus on kerosene production and distribution.

The Rise of LPG: A Cleaner, Cheaper Alternative

As kerosene becomes increasingly unviable, LPG is stepping in to fill the gap. The benefits of LPG over kerosene are driving its adoption across Nigeria:

Benefits of LPG Over Kerosene

1. Cost-Effectiveness: While the upfront cost of purchasing a gas cylinder and stove can be high, LPG is cheaper in the long run. A 12.5kg cylinder of cooking gas, which costs between ₦8,500 and ₦9,000, can last a typical family for several weeks. In contrast, kerosene requires frequent purchases, making it more expensive over time.
2. Availability: LPG is more readily available in urban and semi-urban areas, thanks to investments in storage and distribution infrastructure by companies like NIPCO, Dangote, 11PLC, and Ardova. Current LPG prices at major depots include:
   • NIPCO: ₦875 per kg
   • Dangote: ₦850 per kg
   • 11PLC: ₦857 per kg
   • Ardova: ₦860 per kg
3. Health and Environmental Benefits: LPG burns cleaner than kerosene, producing fewer pollutants and reducing the risk of respiratory diseases caused by smoke inhalation. It is also more efficient, cooking food faster and using less fuel.

Statistics Backing the LPG Boom

• According to the Nigerian National Petroleum Corporation (NNPC), LPG consumption in Nigeria has increased by over 30% in the past year.
• The Nigerian LPG Association (NLPGA) reports that LPG penetration has risen from 5% in 2015 to over 20% in 2025, driven by government policies and private sector investments.
• The federal government aims to increase LPG consumption from the current 1 million metric tonnes annually to 5 million metric tonnes by 2030.

Challenges in the Transition to LPG

While the shift to LPG is a positive development, it is not without challenges:

1. High Initial Cost: Many low-income households cannot afford the upfront cost of purchasing a gas cylinder and stove, which can range from ₦20,000 to ₦40,000.
2. Limited Access in Rural Areas: LPG distribution networks are still underdeveloped in many rural areas, making it difficult for households in these regions to switch from kerosene.
3. Safety Concerns: Some Nigerians are hesitant to use LPG due to fears of gas leaks and explosions. However, experts emphasise that with proper handling and maintenance, LPG is safe for household use.

Government and Private Sector Efforts

To accelerate the adoption of LPG, the Nigerian government and private sector stakeholders have launched several initiatives:

1. LPG Expansion Programme: The federal government has introduced policies to promote LPG use, including tax incentives for importers and distributors.
2. Subsidised Cylinder Distribution: Some state governments and private companies are providing subsidised gas cylinders and stoves to low-income households.
3. Awareness Campaigns: Public awareness campaigns are being conducted to educate Nigerians about the benefits of LPG and how to use it safely.

What This Means for Nigeria’s Energy Future

The transition from kerosene to LPG represents a significant step forward in Nigeria’s journey towards sustainable energy solutions. However, it also underscores the need for inclusive policies that ensure all Nigerians, including those in rural areas and low-income households, can access affordable and clean energy.

As kerosene fades into extinction, the government and private sector must work together to address the challenges of affordability, accessibility, and safety to ensure a smooth and equitable transition to LPG