Understanding the Surge in Cooking Gas Prices in Nigeria: Causes and Implications

In recent months, Nigerians have faced a significant challenge: the skyrocketing cost of cooking gas, also known as liquefied petroleum gas (LPG). This essential commodity, widely used for cooking in households across the country, has seen its price surge dramatically, leaving many families struggling to afford it. As of early 2025, the price of a 12.5kg cylinder of cooking gas has risen to between N15,000 and N17,000 in many regions, a sharp increase from previous years. This article explores the reasons behind this price hike, its impact on Nigerian households, and potential solutions to address the issue.

Why Are Cooking Gas Prices Rising in Nigeria?

Several factors have contributed to the escalating cost of cooking gas in Nigeria. Understanding these causes is crucial to addressing the problem effectively.

1. Global Market Dynamics and Foreign Exchange Challenges

Nigeria relies heavily on imported LPG to meet domestic demand, despite being a major oil-producing nation. The price of LPG on the international market has risen due to increased global demand and supply chain disruptions. Additionally, the depreciation of the Nigerian naira against the U.S. dollar has made imports more expensive. Since LPG transactions are conducted in dollars, the weaker naira has significantly driven up costs for importers, which are then passed on to consumers.

2. Insufficient Domestic Production

Although Nigeria has vast natural gas reserves, the country’s domestic LPG production remains inadequate. The majority of the gas produced locally is exported or used for other industrial purposes, leaving little for household consumption. This reliance on imports exacerbates the vulnerability of Nigerians to fluctuations in global prices and exchange rates.

3. Rising Operational Costs

The cost of distributing and marketing LPG within Nigeria has also increased. From transportation to storage and retail, operational expenses have risen due to inflation, higher fuel prices, and poor infrastructure. These additional costs are inevitably reflected in the retail price of cooking gas, further straining consumers’ budgets.

4. Regulatory and Policy Gaps

The Nigerian government has struggled to implement effective policies to regulate the LPG market and ensure price stability. While efforts have been made to promote the use of clean cooking fuels like LPG, the lack of subsidies or incentives for consumers and suppliers has left the market exposed to volatile price changes.

The Impact of High Cooking Gas Prices on Nigerians

The rising cost of cooking gas has far-reaching implications for households, businesses, and the environment in Nigeria.

1. Financial Strain on Households

For many Nigerian families, cooking gas is a staple energy source due to its convenience and efficiency. However, the steep price increase has forced households to allocate a larger portion of their income to purchasing LPG, leaving less money for other essentials like food, education, and healthcare. Low-income families, in particular, are disproportionately affected, as they struggle to afford even the smallest cylinder refills.

2. Return to Traditional Cooking Fuels

As LPG becomes unaffordable, many Nigerians are reverting to traditional cooking methods, such as firewood and charcoal. This shift has serious consequences for health and the environment. The use of biomass fuels contributes to indoor air pollution, which can lead to respiratory illnesses, especially among women and children who spend significant time in the kitchen. Additionally, deforestation caused by the demand for firewood exacerbates environmental degradation and climate change.

3. Impact on Small Businesses

Small-scale businesses, such as food vendors and caterers, rely heavily on cooking gas to operate. The rising costs have reduced profit margins, forcing some entrepreneurs to increase prices or scale back operations. This not only affects their livelihoods but also contributes to higher food prices for consumers.

Potential Solutions to Address the Cooking Gas Price Crisis

While the situation may seem dire, there are steps that can be taken to mitigate the impact of rising LPG prices in Nigeria and ensure access to affordable, clean cooking energy.

1. Boost Domestic LPG Production

Investing in domestic gas production and refining capacity is critical to reducing Nigeria’s dependence on imports. The government and private sector should collaborate to develop infrastructure, such as gas processing plants and storage facilities, to increase the supply of locally produced LPG. This would help stabilize prices and insulate the market from foreign exchange fluctuations.

2. Strengthen the Naira and Address Forex Challenges

Addressing the depreciation of the naira is essential to lowering the cost of imported LPG. The Central Bank of Nigeria could implement measures to stabilize the currency and improve access to foreign exchange for LPG importers. Additionally, reducing bureaucratic hurdles and taxes on LPG imports could help lower costs for consumers.

3. Subsidies and Price Regulation

Introducing targeted subsidies for LPG could make it more affordable for low-income households. The government could also establish a price regulation mechanism to prevent excessive profiteering by suppliers and retailers. Learning from successful models in other countries, such as India’s LPG subsidy program, could provide valuable insights.

4. Promote Alternative Energy Sources

While LPG remains a popular choice, promoting alternative clean energy sources, such as solar-powered cookers and biogas, could reduce reliance on cooking gas. Public awareness campaigns and incentives for adopting these alternatives could encourage a shift toward more sustainable energy options.

5. Improve Infrastructure and Distribution

Enhancing the LPG distribution network, including better roads and transportation systems, would reduce operational costs and improve access to cooking gas in rural areas. Investments in storage facilities and retail outlets could also help stabilize supply and prevent shortages.

Conclusion

The surge in cooking gas prices in Nigeria is a pressing issue that demands immediate attention from policymakers, industry stakeholders, and the public. While global market forces and currency challenges play a significant role, domestic factors such as inadequate production and poor infrastructure exacerbate the problem. By addressing these root causes through increased local production, policy interventions, and infrastructure improvements, Nigeria can ensure that its citizens have access to affordable and clean cooking energy.

For now, Nigerian households and businesses must navigate the financial strain caused by high LPG prices. However, with concerted efforts from all stakeholders, the country can move toward a more sustainable and equitable energy future. Reducing the cost of cooking gas not only improves the quality of life for millions of Nigerians but also supports environmental conservation and economic growth.