Cooking Gas Jumps 40% to N1,400/kg as Middle East Tensions Disrupt Supply

The price of cooking gas in Nigeria has climbed sharply amid the ongoing Middle East crisis, rising to about N1,400 per kilogramme, representing a 40 per cent increase from N1,000 recorded last week.

The surge follows a rise in the ex-depot price of Liquefied Petroleum Gas (LPG), which increased by 13 per cent week-on-week to N18 million per 20 metric tonnes, compared with N15.95 million the previous week.

Industry experts attribute the increase to disruptions in global oil production and supply triggered by tensions in the Middle East.

A survey of gas plants across Lagos showed that several outlets have already adjusted their prices to the new rate.

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Inyang Edu, confirmed that supply pressures in the international market were behind the increase.

“We are faced with limited supply in the international market due to the Iraq-Israel-American crisis, which has now triggered the price increase. Even though we produce locally, including supplies from the Dangote Refinery, once prices rise in the international market, it affects domestic prices in naira,” he said.

Edu said the price had briefly declined before the crisis escalated.

“As of last week, the price dropped to N15.95 million per 20 mt from N16 million, but with this crisis, it has increased to N18 million. Some depots are selling at N19 million, but I heard today that one outlet sold at N17.5 million.”

According to him, marketers who previously purchased LPG at lower prices must now increase retail rates to stay in business.

He appealed to consumers not to blame retailers and gas plant operators, explaining that the price surge reflects developments in the global oil market.

“We are hopeful that the crisis will be resolved soon, but even when it is, it will take time for prices to drop. For now, the effect of the crisis is impacting the entire oil and gas industry.”

Edu said supply remains fairly stable nationwide, although a few depots are temporarily out of stock while waiting for vessels carrying new shipments.

“Since the beginning of the year, supply has been stable. It was this Middle-east crisis that affected prices. Crude oil is an international commodity priced in dollars,” he explained.

He added that rising global crude prices, currently around $84 per barrel, have also forced adjustments in fuel prices at the Dangote Refinery.

As a result, the ex-depot price of petrol (PMS) has increased to N875 per litre from N774.

Edu warned that higher energy costs could affect transportation, food prices and broader economic activities.

“This is likely to have a ripple effect on the domestic economy, including transportation costs, food prices and overall economic activity. Given the removal of fuel subsidy, returning to subsidised pricing is not a feasible solution.”

He urged the government to track international oil price movements and consider monetary policy adjustments to reduce the economic impact.

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