Oil & Gas
- AN energy expert, Mr Edu Inyang, has said that foreign exchange pressures, supply shortages and infrastructural challenges are sustaining high cooking gas prices in Nigeria, even amid rising domestic production
Inyang, President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said this in an interview with the News Agency of Nigeria (NAN) on Friday in Lagos.
He said the country’s LPG market remained heavily exposed to global pricing dynamics and domestic structural bottlenecks.
Inyang explained that even locally produced LPG is largely priced against international benchmarks, saying, “it is a situation that continues to transmit global shocks into the domestic market.
“With the Naira trading around N1,350 to the dollar, import and depot pricing inevitably reflect foreign exchange realities.”
Inyang also pointed to the suspension of the naira-for-crude arrangement with the Dangote Refinery in 2025, noting that it contributed to a return to dollar-based transactions in parts of the downstream market.
According to him, the supply structure is further complicated by the type of gas produced locally.
He explained that Nigeria consumes more butane for cooking, while much of domestic output is propane, often exported for foreign exchange earnings.
Inyang said supply gaps persist, forcing continued reliance on imports, in spite of the increased output from Nigeria LNG Ltd. (NLNG).
“NLNG has supported the domestic market, but feedgas constraints limit consistent delivery,” he said, adding that imports still account for a significant share of national consumption.
Iyang also blamed crude oil theft and pipeline vandalism for reducing feed gas supply to processing facilities, describing it as a key driver of lower LPG output.
On market dynamics, Inyang described the entry of the Dangote Refinery as “significant,” saying it had boosted local supply and triggered price adjustments across the value chain.
“Combined with NLNG, domestic supply accounted for about 87 per cent of demand in 2025, helping to push retail prices down from about N1,800 per kilogramme to between N1,000 and N1,100,” he said.
However, he warned that the market remains vulnerable to disruptions due to over-reliance on a few major suppliers.
“Any slowdown in refinery operations immediately tightens supply and affects prices,” he said.
Inyang added that the refinery’s plans to divert part of its LPG output to petrochemical use could further influence domestic availability.
He also raised concerns over restricted access to products for independent marketers, saying many now rely on intermediaries and depot owners, which adds to costs.
Transport and infrastructure gaps, he said, continue to widen price disparities across the country.
“Prices can rise significantly as LPG moves from Lagos to northern and rural markets due to logistics and storage challenges,” he said.
Inyang noted that Nigeria currently has only about 18 days of LPG storage capacity, a situation he said leaves the market exposed to shocks during maintenance shutdowns.
He also highlighted low cylinder penetration as a major barrier to wider adoption of clean cooking gas, especially among low-income households.
“Clean cooking is becoming increasingly expensive for ordinary Nigerians,” he warned.
According to the NALPGAM boss, urgent intervention is needed to sustain energy transition goals.
Inyang called for stronger enforcement of domestic supply obligations, expansion of local storage infrastructure and wider adoption of naira-based transactions in the LPG market.
He also urged intensified action against crude oil theft and targeted support for households to access cooking gas cylinders, noting that Nigeria has the potential to significantly expand LPG consumption if key reforms are implemented.
“With the right policies, prices can stabilise and millions more households can transition to clean cooking energy by 2030,” Iyang said.(NAN)
F.O
F.O
Tags: NALPGAM