Households suffer as cooking gas shortage worsens, rises to N25,000

In recent days, many households in Nigeria have been experiencing a severe cooking gas shortage, which has pushed the price of refilling a 12.5kg cylinder to as high as ₦25,000 in some retail outlets in Lagos and other parts of the country.¹ This represents a significant increase from prices that hovered around ₦12,500 just a week prior.

Reasons for the Shortage and Price Hike

According to the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), the crisis is primarily due to a supply disruption triggered by a recent industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) against Dangote Petroleum Refinery.²

• PENGASSAN Strike: The strike, which involved a dispute between PENGASSAN and the Dangote Refinery management, led to a halt in the discharge of liquefied petroleum gas (LPG) from vessels at the Apapa depot. This effectively crippled a major supply channel.
• Dominant Supplier: The Dangote Petroleum Refinery is now the highest local supplier of cooking gas in Nigeria.³ As a result, when its operations were affected, it created an immediate and widespread shortage, forcing many dealers to shut down.⁴
• Demand and Supply: The disruption created a classic market situation where demand far outstripped the limited supply, leading to a sharp hike in prices.⁵ Marketers who were able to get their hands on a limited stock from other competitors or imports at higher rates passed the costs on to consumers.⁶

Impact on Households

The soaring price and scarcity of cooking gas are having a devastating impact on Nigerian households, forcing many to resort to less safe and clean alternatives.⁷

• Financial Strain: The cost of refilling a 12.5kg cylinder is now more than three times the national monthly minimum wage. This places an immense financial burden on families already struggling with high inflation and other economic pressures.⁸
• Unsafe Alternatives: Frustrated by the high cost and scarcity, many households are reverting to traditional, less healthy, and environmentally damaging cooking methods such as firewood and charcoal.⁹ This undermines the government’s clean energy transition agenda and poses health risks.¹⁰
• Everyday Hardship: Nigerians are reporting long queues at the few gas plants that have products, and some are rationing their use of gas for essential tasks.¹¹ A survey by The Guardian showed some residents are now paying as much as ₦3,500 per kilogram.¹²

Broader Context

This current crisis is part of a larger, ongoing issue with the country’s energy sector. Despite being an oil and gas-producing nation, Nigeria has struggled to provide affordable and consistent access to cooking gas due to several factors including:

• Fluctuating foreign exchange rates¹³
• High costs of shipping and maritime insecurity¹⁴
• Limited port infrastructure and storage capacity¹⁵
• Taxes and import duties on imported gas¹⁶

While the government has previously banned the export of locally produced LPG to prioritize domestic supply, such policies have not been enough to address the fundamental issues of supply chain bottlenecks and market volatility.¹⁷ The current situation highlights the urgent need for a lasting resolution between key stakeholders and for more effective government intervention to stabilize the market and ensure energy security for Nigerians.