Nigeria’s Liquefied Petroleum Gas (LPG) market has began to experience a significant reduction in prices across the country.
The stronger product availability at coastal depots helps resolve the supply constraints that recently pushed cooking gas costs to unprecedented levels.
Recent market surveys conducted by Petroleumprice.ng reveal that wholesale LPG prices have fallen to as low as ₦1,100 per kilogramme, compared with the average of ₦1,500/kg recorded only a few days earlier.
During the peak of the recent supply shortage, prices in certain areas surged to nearly ₦2,200/kg, adding to the financial burden faced by households and businesses.
Lagos records biggest price decline as market competition grows
Current pricing figures show that Lagos now has the lowest depot prices nationwide following the arrival of fresh LPG cargoes into the market.
Techno Oil is presently selling LPG at ₦1,095/kg, making it the cheapest among the major depots operating in Lagos. Other leading marketers, including Navgas, Nipco, Mobil (11 Plc) and Ardova, are offering the product at ₦1,100/kg, underscoring the heightened competition driven by improved supply.
In the Niger Delta, Matrix Energy’s Warri depot has priced LPG at ₦1,150/kg, demonstrating how the gap in prices between different regions is shrinking as supplies become more widely available across the country.
In contrast to recent weeks, when only a limited number of depots had products in stock, multiple terminals are now actively distributing LPG, indicating that the market has moved from a period of scarcity to one of ample supply.
Improved supply fuels market adjustment
Industry stakeholders say the steep decline in prices is being driven by higher import volumes, increased domestic production and stronger inventory levels at storage facilities.
As more LPG cargoes arrive at Nigerian ports and local producers ramp up output, marketers are now focused on attracting customers instead of competing to secure limited supplies.
Further LPG price reductions anticipated
Industry experts told Petroleumprice.ng that wholesale LPG prices may fall even further, potentially reaching about ₦900/kg in the coming weeks if the current pace of supply is maintained.
According to the experts, increased domestic production, higher import volumes, healthier inventory levels and stronger competition among depot operators are all expected to support the continuing downward movement in prices.
Should this trend persist, consumers across Nigeria could soon benefit from more affordable cooking gas, offering welcome relief after several months of steadily increasing energy costs.
