Fresh Increases in Cooking Gas Prices Loom As Depot Quotes New Price

• Cooking gas prices are under pressure in Lagos as LPG supply shortages have persisted for about two weeks
• Only Techno Oil is reportedly active, selling at about N1,275 per kilogram, while retail prices could rise
• Industry operators link the disruption to depot supply constraints in Lagos, Nigeria’s main LPG hub

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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Prices for cooking gas are set to climb again following an extended shortage in the supply of Liquefied Petroleum Gas (LPG) that continues to constrain depot operations and limit availability.

Sources in the market indicate that supply disruptions at major depots have been in place for approximately two weeks, severely hampering loading operations and tightening the supply of LPG throughout Lagos and nearby markets.

Petroleumprice report suggests that only one depot, Techno Oil, is currently dispensing LPG at around N1,275/kg by Friday, May 22 from the previous average price of N1,200.

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In some parts of the commercial capital, the supply crunch is already impacting product availability, with marketers citing a reduced ability to load desired quantities for retail sales.

Retail price to increase

Market participants downstream anticipate the rapid increase of cooking gas prices, noting that in some markets, retail prices might rise to as high as N2,000/kg if current trends continue.

A marketer, on condition of anonymity, said:

"This shortage is making the market tight already, and it is set to become tighter if supply inflow continues to fall."

The shortage is the second consecutive week in which the supply of LPG at the Lagos depots has been affected, fueling concerns of scarcity and price volatility in the nation's domestic cooking gas market.

According to market operators, these global volatilities are passed to Nigeria's LPG supply chain in the form of costly imports, shipping delays, and tight product availability.

As the commercial centre for the distribution of LPG across the country, disruptions in Lagos depots are often replicated nationwide due to the extensive network, which draws supply from these loading centres.

Analysts warn that prolonged scarcity may further escalate market woes, particularly among households and businesses still reeling from a higher cost of energy and widespread inflation nationwide.

Lagos serves as Nigeria’s largest LPG distribution hub, meaning any sustained disruption in depot operations typically has a ripple effect on supply and pricing across other regions.

Cooking gas NBS

Legit.ng earlier captured data from the National Bureau of Statistics on the price of cooking gas across states.

NBS, in its report titled “Cooking Gas Price Watch”, showed increases across both the 5kg and 12.5kg cylinders, with some states paying significantly more than others.

The average cost of refilling a 5kg cylinder rose from 6,395.82 naira in September to N8,081.75.

State analysis mirrors the pattern seen in the 5kg category. Borno again leads with the highest average price at 19,391.57 naira, followed by Yobe at N19,339.51 and Ondo at N19,289.65.