Liquefied Petroleum Gas (LPG) prices in Nigeria have risen due to shrinking domestic supply and mounting pressure from global energy markets, according to the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM). Edu Inyang, the association's president, stated on Sunday in Lagos that depot prices had climbed as a result of reduced allocations from the Dangote Refinery and higher import costs. He explained that marketers were facing difficulties securing regular product supply, with some going for prolonged periods without allocations. Inyang noted that even those with access were adjusting prices in response to demand and rising input costs.
Supplies from Nigeria LNG Ltd. were also becoming more expensive, contributing to the upward trend in depot pricing across the country. Inyang emphasized that Nigeria remains vulnerable to global energy fluctuations, saying, "Nigeria is not insulated from global energy shocks. Developments in the international market inevitably affect local LPG prices." He pointed to reliance on imported materials and foreign exchange volatility as key factors driving up expenses for operators. Depot owners, he added, cannot sell below their landing and operational costs, a reality that directly influences what consumers pay at the retail level. Despite the current strain, Inyang expressed confidence that past supply cycles had corrected with investment, and this one would too. He urged expansion of gas processing infrastructure and greater private sector involvement to increase local production and ease market pressures.
When Inyang says Nigeria is not insulated from global energy shocks, he is acknowledging a deeper structural flaw — the country's dependence on imported gas and foreign exchange despite sitting on vast domestic reserves. The Dangote Refinery's reduced output isn't just a supply hiccup; it exposes how fragile Nigeria's energy security remains even with private investment. Until gas infrastructure is decentralized and local production decoupled from global pricing mechanisms, price spikes will keep hitting households directly. This isn't a market failure — it's a policy failure masked as economics.
