Nigeria cooking gas prices drop amid increased LPG imports

Cooking gas prices in Nigeria have seen a significant decline, dropping approximately 39 percent from June highs to around N1,400 per kilogram in cities such as Lagos and Enugu. This price reduction follows a massive increase in Liquefied Petroleum Gas (LPG) imports enabled by government permits. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that average daily LPG imports rose from 0.1 kilotonnes per day in May to 1.5 kilotonnes per day in June, a 1,400 percent increase, helping to offset a 10 percent drop in domestic production.

Despite the downward trend, Nigeria LNG Limited (NLNG) has raised concerns regarding market distortions. NLNG Managing Director Adeleye Falade stated that while retail prices reached as high as N2,400/kg, the company was selling product to marketers for between N800 and N900/kg. NLNG attributed previous price spikes to artificial scarcity caused by some marketers stockpiling gas in terminals rather than distributing it. To address this, the company has engaged a consulting firm to assess off-taker capacity and has introduced a round order system to prioritize distributors with effective retail networks.