Energy
Cooking Gas Prices Ease as Supply Improves
Households across parts of the country are beginning to experience relief as retail prices of Liquefied Petroleum Gas, popularly known as cooking gas, decline following improved product supply and softer depot prices.
The latest market update from gas marketers showed that retail LPG prices have started easing in major cities after weeks of elevated prices, although the reductions have not been uniform because of varying transportation costs, distance from supply depots and retailer margins.
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Checks by marketers indicated that cooking gas is now selling for between N1,100 and N1,350 per kilogramme in Lagos, Ibadan and Abeokuta, while consumers in Benin City, Port Harcourt and Warri are paying between N1,150 and N1,400/kg.
In Onitsha and Enugu, retail prices range from N1,200 to N1,450/kg, while consumers in Abuja pay between N1,250 and N1,500/kg.
The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, told our correspondent that northern cities, including Kano and Kaduna, currently record prices of N1,300 to N1,550/kg, while consumers in Maiduguri and parts of the North-East still pay the highest prices, ranging from N1,350 to N1,650/kg, reflecting the additional logistics costs of transporting products to the region.
Overall, Inyang said the national retail price range now stands at approximately N1,100 to N1,650 per kilogramme, although some neighbourhood retailers continue to charge above the range where transportation and distribution costs remain elevated.
The improvement marks a reversal from the sharp increases witnessed from May, when supply tightness and rising depot prices pushed cooking gas costs significantly higher across several parts of the country.
According to the NALPGAM president, the latest decline follows improved product availability from both domestic production and imports, as well as lower depot prices. He also attributed the easing to increased competition among marketers and the disappearance of panic buying that had briefly tightened supplies.
“Following reports of improved LPG supply and softer depot prices in late June 2026, retail cooking gas prices have started easing in some markets, although the reduction has not been uniform across Nigeria. Transport costs, distance from depots, and retailer margins still create noticeable differences between cities.
“Overall, the national retail range is roughly N1,100 to N1,650 per kilogramme, with some neighbourhood retailers charging slightly above this range where logistics costs remain high. The recent easing reflects lower depot prices as supply improved, increased product availability from domestic sources and imports, reduced panic buying and hoarding after government market interventions, and more competition among marketers in major cities,” Inyang said.
The development is expected to provide some relief to households grappling with rising living costs, although industry players noted that prices may continue to differ from one location to another depending on local distribution expenses.
Based on the prevailing retail prices, a 5kg cylinder refill now costs between N5,500 and N8,250, while a 6kg refill ranges from N6,600 to N9,900. Inyang said consumers refilling a standard 12.5kg cylinder are expected to pay between N13,750 and N20,625, depending on location and retailer.
Despite the improvement, marketers cautioned that retail prices are yet to stabilise nationwide, noting that communities located farther from major LPG depots may continue to experience relatively higher prices because of transportation costs.
Industry operators expressed optimism that sustained product availability from local producers, alongside steady imports, would further moderate prices in the coming weeks, provided there were no major disruptions to supply or logistics.
Also, the National Chairman of the Liquefied Petroleum Gas Retailers Branch of the Nigeria Union of Petroleum and Natural Gas Workers, Ayobami Olarinoye, told our correspondent that normalcy was gradually returning to the sector.
However, Olarinoye, whose members sell gas in neighbourhood shops, said they currently sell to consumers at prices ranging from N1,600 to N1,800/kg. “The inflow and supply are gradually getting back to normal. There is more availability.
“The price is also coming down gradually. As of today (Monday), we buy from between N1,300 and N1,500 per kg from the marketers (plant operators), depending on the locations, while we sell between N1,600 and N1,800 per kg to consumers. This also depends on the location and associated logistics.”
The PUNCH earlier reported that as cooking gas prices rose by about 140 per cent in many locations across the country, marketers finalised plans to import the product on a large scale to improve affordability and availability.
Cooking gas prices rose from an average of N1,000 per kilogramme in January and February this year to as high as N2,400 between May and June. Consequently, the regulator began issuing licences for the importation of LPG. This followed the inability of local LPG producers to meet domestic demand, according to industry operators.
Meanwhile, the Minister of Petroleum Resources (Gas), Ekperikpe Ekpo, intervened, warning operators against hoarding and profiteering.
Nigeria has met and exceeded its Organisation of Petroleum Exporting Countries (OPEC) quota of 1.5mbpd for the third consecutive month.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in a statement on Tuesday.
The statement has it that in July 2026, Nigeria produced 1.505mbpd of crude oil and 0.17mbpd of condensate, making combined daily production to 1.67mbpd.
During the month under review, the daily peak production of crude oil and condensate was 1.78mbpd, while the lowest daily production was 1.57mbpd.
Although Nigeria met its OPEC quota in July, the statistics show that, on a month-on-month basis, production fell by 4 per cent.
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The NUPRC attributed the decline in production to operational challenges at the Erha and Akpo fields, which affected output during the period under review.
These disruptions constrained production volumes and contributed significantly to the overall reduction in national crude oil output.
Despite the challenges, production operations across most other producing assets remained relatively stable, with operators implementing measures to maintain production efficiency and minimise the impact of operational constraints.
Crude oil and condensate supply to local refineries rose by 88.4 percent to 53.7 million barrels in the second quarter of 2026, Q2’26, from 28.5 million barrels in the first quarter, Q1’26, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has said.
The commission, in its Q2 2026 statistics on the enforcement of the Domestic Crude Supply Obligation, DCSO, said the 53.7 million barrels supplied to domestic refiners represented 97.4 percent performance during the quarter.
The DCSO is being enforced by the NUPRC pursuant to Section 109 of the Petroleum Industry Act, PIA, which provides for the supply of crude oil produced in Nigeria to domestic refineries.
According to the commission, the increase in crude supply coincided with higher domestic oil production and the execution of long-term crude supply agreements supported by bankable Sales and Purchase Agreements, SPAs, between producers and domestic refiners.
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The NUPRC said it conducts monthly consultations with crude oil producers and licensed domestic refineries, following which specific volumes of crude oil and condensate are allocated to producers for supply to local refiners.
It, however, noted that the DCSO operates on a “willing buyer, willing seller” basis in accordance with the PIA, which affects the volumes eventually supplied and accepted.
In April, the NUPRC allocated 18.13 million barrels to producers, while producers offered 19.31 million barrels to domestic refiners. Actual supply stood at 20.88 million barrels, representing 114.9 percent performance against the allocation.
In May, the commission allocated 18.78 million barrels, while producers offered 23.19 million barrels to local refiners. Actual supply fell to 14.23 million barrels, representing 75.8 percent compliance.
Supply increased in June, with the NUPRC allocating 18.17 million barrels to producers, while producers offered 26.84 million barrels to refiners. Actual supply stood at 18.61 million barrels, representing 102.4 percent performance.
The commission said the figures showed that the DCSO was being actively administered and enforced, adding that the improvement was supported by increased crude production and stronger commercial arrangements between producers and refiners.
At the refinery level, the NUPRC said Dangote Refinery required 63 million barrels of crude in Q2, while producers offered 68.1 million barrels.
The 68.1 million barrels offered represented 98 percent of the total crude volumes offered by producers during the quarter.
However, the refinery accepted 52.6 million barrels, representing 78 percent of the volume offered to it.
The NUPRC said it remained committed to supporting the Federal Government’s objective of achieving energy sufficiency by leveraging the PIA to sustain the growth in crude oil production and continuously enforce the DCSO.
Oil prices extended a strong rally Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year.
Crude has surged around 10 per cent over the past week, with the United States and Iran appearing no closer to a deal on the crucial waterway despite upbeat comments from the White House earlier in the month.
In the latest blow, Donald Trump said Monday he would seek conflict compensation from Iran as part of any peace negotiations, citing attacks and killings stretching back decades allegedly backed or perpetrated by Tehran.
The US president’s announcement was a direct response to Tehran’s demand for US war reparations as a precondition to any resolution of the crisis.
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Trump’s remarks came a day after he said he was “low-keying” his approach to the conflict, suggesting he was prepared to let economic pressure mount in place of further military strikes.
However, the latest back and forth risks putting a quick agreement further out of reach, and on Monday both main crude contracts jumped around five per cent. They rose more than one per cent on Tuesday.
“In the absence of any positive headlines on negotiations to reopen the strait, pressure on oil prices has been upward,” wrote Jason Wong at BNZ.
And Stephen Innes, global strategist at Quintex Intel, said: “In effect, both sides are trying to weaponise the oil barrel without firing another shot. Washington is trying to choke Iran’s ability to get its crude out, while Tehran is squeezing the artery through which everybody else’s crude gets through.
“It is quite the game of chicken.”
The prospect of oil prices remaining elevated for the time being has revived concerns over inflation and boosted the chances of interest rate increases.
While a surprise loss of more than 20,000 jobs in the US economy last month eased fears of a Federal Reserve hike, a spike in price pressures could force the bank’s hand.
Cleveland Fed boss Beth Hammack told Yahoo Finance on Monday: “I would say in general, one 25-basis-point move probably doesn’t do a whole lot for the economy.
“So it’s probably some number of (movements). But I don’t want to prejudge what that number is going to be.”
The US-Iran deadlock and rising crude costs come as traders await the release of consumer price data on Wednesday, which could play a key role in guiding the Fed on its next move.
Asian equities were mixed following a tepid day on Wall Street.
Hong Kong, Shanghai, Wellington, Mumbai, Bangkok and Jakarta all retreated but there were gains in Seoul, Sydney, Singapore, Taipei and Manila. London and Frankfurt opened higher while Paris was flat.
Tokyo was closed for a holiday.
Key figures around 0715 GMT include: West Texas Intermediate: UP 1.5 per cent at $83.37 per barrel, Brent North Sea Crude: UP 1.3 per cent at $88.85 per barrel, Hong Kong – Hang Seng Index: DOWN 1.0 per cent at 25,679.98, Shanghai – Composite: DOWN 0.8 per cent at 3,934.09 (close).
London – FTSE 100: UP 0.1 per cent at 10,872.52, Tokyo – Nikkei 225: Closed for holiday, Euro/dollar: DOWN at $1.1535 from $1.1543 on Monday, Pound/dollar: DOWN at $1.3505 from $1.3508, Dollar/yen: DOWN at 159.22 yen from 159.31 yen, Euro/pound: DOWN at 85.42 pence from 85.45 pence, New York – DOW: DOWN 0.1 percent at 53,975.98 (close).
Courtesy – AFP
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