Nigeria's Liquefied Petroleum Gas (LPG) market is witnessing a sharp decline in prices as improved product availability across coastal depots eases the supply shortages that recently drove cooking gas costs to record highs. Fresh market checks by Petroleumprice.ng show that wholesale LPG prices have dropped to as low as ₦1,100 per kilogramme, down from an average of ₦1,500/kg recorded just days ago. At the height of the recent supply crisis, prices in some locations climbed close to ₦2,200/kg, placing additional pressure on households and businesses.
Lagos Leads Price Drop as Competition Intensifies
The latest pricing data indicates that Lagos is recording the cheapest depot prices in the country as fresh LPG cargoes flood the market. Techno Oil currently offers LPG at ₦1,095/kg, the lowest price among major depots in Lagos. Other key marketers, including Navgas, Nipco, Mobil (11 Plc) and Ardova, are selling at ₦1,100/kg, reflecting intense competition as supply improves. In the Niger Delta, Matrix Energy's Warri depot is offering LPG at ₦1,150/kg, highlighting the narrowing price gap between regions as more products become available nationwide. Unlike previous weeks when only a handful of depots had stock, several terminals are now actively supplying LPG, signalling that the market has shifted from scarcity to abundance.
Improved Supply Drives Market Correction
Industry players attribute the sharp price decline to increased imports, stronger domestic production and improved inventory levels across storage facilities. With more LPG cargoes arriving at Nigerian ports and producers boosting supply, marketers are now competing for customers rather than struggling to secure products. The healthier stock levels have significantly eased pressure on the market, allowing wholesale prices to decline while creating room for further reductions at the retail level.
Government Measures Begin to Yield Results
The turnaround follows a series of interventions by the Federal Ministry of Petroleum Resources (Gas) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) after the recent surge in cooking gas prices. Authorities convened an emergency stakeholders' meeting involving producers, marketers, terminal operators, regulators, the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to address hoarding, diversion, artificial scarcity and other market distortions. The meeting also agreed on tighter market monitoring, better supply coordination, expanded storage and distribution infrastructure, stronger product-tracking systems and increased domestic LPG supply. According to the NMDPRA, the measures are already producing results. National LPG supply sufficiency has improved from 11 days to 22 days, while average daily supply increased from 4,262 metric tonnes in May to 5,040 metric tonnes in June, easing supply pressures across the country.
More LPG Price Cuts Expected
Industry experts told Petroleumprice.ng that wholesale LPG prices could decline further to around ₦900/kg in the coming weeks if the current supply momentum is sustained. They said rising domestic production, additional import volumes, stronger inventories and growing competition among depots are expected to keep prices on a downward trajectory. If the trend continues, consumers across Nigeria could soon enjoy lower cooking gas prices, providing much-needed relief after months of rising energy costs. As millions of households struggle with soaring costs, this forecast offers a much-needed glimmer of hope, especially for families forced to cut back or turn to alternative fuels amidst an ongoing economic crisis.
