Nigeria's Cooking Gas Prices Soar to ₦950 per KG Amid Iran Conflict
Cooking gas prices in Nigeria have experienced a dramatic surge, reaching an unprecedented ₦950 per kilogram. This sharp increase is directly linked to escalating tensions in the Middle East, where Iran's attacks on commercial vessels in the Strait of Hormuz have severely disrupted global energy supply chains.
Global Energy Corridor Crisis
The Strait of Hormuz, a narrow but critically important waterway situated between Iran and Oman, serves as a vital artery for global energy transportation. This strategic passage accounts for approximately 20% of the world's total oil and liquefied natural gas (LNG) supply. When this corridor faces disruption, the consequences reverberate across international markets, and Nigeria finds itself particularly vulnerable to these global shocks.
According to detailed vessel-tracking data provided by Vortexa, crude tanker transits through the Strait of Hormuz collapsed dramatically from an average of 24 vessels per day to a mere four vessels on March 1. This significant reduction occurred immediately following the outbreak of hostilities in the region, creating immediate pressure on energy markets worldwide.
Immediate Market Impact
The ripple effects from the Strait of Hormuz closure manifested rapidly across global energy benchmarks. Brent crude oil prices climbed sharply to $84 per barrel, representing a substantial increase from the previous level of $72.87. Nigeria's own Bonny Light benchmark experienced similar upward pressure, surging to $80 per barrel from $70, marking its highest valuation point since July 2025.
European natural gas markets witnessed even more dramatic movements, with prices soaring as much as 40% during a single trading session. These international price movements have translated directly into higher costs for Nigerian consumers, with cooking gas prices experiencing their most significant single increase in recent memory.
Nigerian Market Reality
At Lagos depots, the new pricing reality has become immediately apparent. Channels TV reports indicate that Nipco Plc, one of Nigeria's largest LPG distributors, is now selling cooking gas at ₦950 per kilogram. Other major distributors have followed suit with similar increases, with Navgas Limited dispensing at ₦900 per kilogram and Techno Oil pricing its stock at ₦885 per kilogram.
These new prices represent a substantial departure from the previous market average of approximately ₦800 per kilogram. This means Nigerian households are now paying up to ₦150 more per kilogram for cooking gas, a significant financial burden that has materialized within just a few days.
Structural Vulnerabilities Exposed
Nigeria's position in the global energy market reveals significant structural vulnerabilities despite the country's substantial natural gas reserves. According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, 87% of the 52,900 metric tonnes of cooking gas supplied to the domestic market in 2025 were locally sourced. While this represents an improvement over previous years, the remaining 13% import dependency leaves Nigeria exposed to international price volatility.
Perhaps more critically, even locally produced liquefied petroleum gas (LPG) is priced against international benchmarks. This pricing mechanism means that when global markets experience turbulence, local prices inevitably follow regardless of Nigeria's domestic production capacity. Additional pressure from foreign exchange fluctuations further compounds this vulnerability, transforming a crisis in the Persian Gulf into immediate financial pressure at local Nigerian gas depots.
Regional Production Disruptions
The conflict's impact extends beyond immediate shipping disruptions to actual production reductions. Iraq, OPEC's second-largest producer, has warned that it may be forced to cut output by more than 3 million barrels per day if tanker movement through the Gulf remains restricted. Production reductions have already commenced, with 700,000 barrels per day cut from the Rumaila field and an additional 460,000 barrels per day from West Qurna 2.
Qatar, one of the world's largest LNG exporters, has also faced significant production disruptions, further tightening global supply. Regional powers including Saudi Arabia, the United Arab Emirates, and Kuwait have successfully intercepted most Iranian missiles and drones targeting energy infrastructure, but security analysts remain concerned about how long these defensive capabilities can be sustained.
Future Outlook
The conflict shows no immediate signs of de-escalation, and energy markets continue to face uncertainty. Until the Strait of Hormuz reopens fully for unrestricted commercial traffic, both global energy markets and Nigerian households should anticipate continued pressure on prices. The interconnected nature of global energy supply chains means that geopolitical events thousands of miles away can have immediate and tangible consequences for everyday Nigerians trying to afford basic cooking necessities.
