Why Nigerian households now pay less for cooking gas

THE price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in Nigeria recently rose significantly, reaching as high as N2,000 per kilo during the first week of June 2026.

At the beginning of June 2026, filling stations sold LPG above N2,000 per kg, but neighbourhood retailers charge significantly more due to transport costs, making consumers pay up to N2,400 per kilogramme. This has worsened living costs and placed additional pressure on households already struggling with the high cost of food items, transportation costs, and inflation generally.

However, during the last week of June 2026, prices began to ease in some markets following improved supply, which was attributed to the truce agreement between Iran and the United States on the Iran-US war. Recent market reports show cooking gas selling around N1,200 and N1,500 per kilogramme in many locations, although some filling stations still sell at higher prices of up to N2,200 per kilogram. But before tensions between the United States, Israel, and Iran escalated in early 2026, cooking gas sold for an average of about N800 to N1,050 per kilogramme across much of Nigeria.

Several factors are responsible for this significant surge.  Firstly, there were global market fluctuations. Despite being an oil-producing country, Nigeria still depends heavily on refined oil imports, including LPG. The international price of gas changes regularly due to global factors, fuelled by increased demand in other countries, geopolitical issues, and supply challenges, which have also contributed to the price hike. Industry operators have reported shortages at some gas depots, while transportation costs have continued to rise.

READ ALSO: Middle East crisis hits Nigerians as cooking gas, petrol prices soar

Another reason for the increase is the rising cost of importing gas. Nigeria imports more than it exports, not only of natural gas, but of virtually everything. The local market is still influenced by international prices, and the weak naira has made it more expensive for marketers to import gas and other related products, leading to higher prices for consumers.

The recent US-Iran conflict is also a major factor in the rising cost of LPG. Middle East, being a major supplier of oil and gas globally, has been hit by unrest, raising concerns about disruptions to supply routes (the Strait of Hormuz). As a result, international gas prices have increased, making imports more expensive for some countries, including Nigeria.

However, there is now some relief. The recent truce between US and Iran has contributed to the decline in cooking gas prices in Nigeria. Oil prices have fallen from their peak, and shipping activity is gradually recovering, helping to reduce pressure on LPG prices worldwide. This is one reason cooking gas prices in Nigeria have started declining from the highs of N2,400 per kilogramme recorded in early June. While the Iran-US truce has helped bring cooking gas prices down from their peak, Nigerians are still spending nearly twice what they paid before the conflict.

While consumers are beginning to enjoy some relief, analysts say it may be too early to expect a return of LPG prices to pre-crisis levels. Nigerian marketers pay more to source and transport cooking gas, resulting in higher retail prices for consumers. Unless, Nigeria strengthens its local gas production, storage, supply, and distribution network or systems, cooking gas prices could remain relatively high and volatile in the months ahead, experts say.

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, told The Punch that retail cooking gas prices have started easing in some markets, although the reduction has not been uniform across Nigeria. “Transport costs, distance from depots, and retailer margins still create noticeable differences between cities.”

He said “the national retail range is roughly N1,100 to N1,650 per kilogramme, with some neighbourhood retailers charging slightly above this range where logistics costs remain high.”

He added that the recent easing reflects lower depot prices as supply improved, increased product availability from domestic sources and imports, reduced panic buying and hoarding after government market interventions, and more competition among marketers in major cities