Price Surge Pushes Millions to the Brink

NIGERIA’S worsening cost-of-living crisis has taken another painful turn as soaring Liquefied Petroleum Gas (LPG) prices continue to strain household budgets and threaten thousands of small businesses, forcing many families back to firewood and charcoal despite years of government efforts to promote cleaner cooking energy.

A nationwide survey across the country’s six geopolitical zones revealed that although cooking gas prices have moderated slightly after peaking in late June, millions of Nigerians continue to pay significantly more than they did only a few months ago. Consumers, retailers and industry experts warn that unless structural problems within the domestic gas industry are addressed, similar price shocks are likely to recur.

Global Tensions Spark Domestic Price Shock

Industry operators traced the latest surge to disruptions in international energy markets following tensions involving Iran, Israel and the United States.

The geopolitical crisis created uncertainty across global LPG supply chains, raising wholesale prices and disrupting imports into Nigeria. However, experts argue that international developments merely exposed long-standing domestic weaknesses that have made Nigeria’s cooking gas market highly vulnerable.

Despite being one of Africa’s leading gas producers, Nigeria still relies heavily on imported LPG, while inadequate storage facilities, weak transportation infrastructure, inconsistent government policies and foreign exchange pressures continue to inflate prices.

Industry stakeholders noted that wholesale prices for a 20-metric-tonne LPG truck rose dramatically during the crisis before easing following improvements in global supply conditions.

Households Scale Back Consumption

Across Nigeria, consumers have responded by purchasing smaller quantities of cooking gas, delaying refills, reducing meal preparation and increasingly returning to traditional fuels such as charcoal and firewood.

Many families reported that money previously sufficient to refill entire cylinders now purchases only a fraction of their normal consumption.

Residents interviewed in Lagos, Abuja, Akure, Ibadan, Kano, Uyo, Port Harcourt, Makurdi, Jos, Enugu and several other cities described the rising prices as another burden on already stretched household finances.

For many low-income earners, cooking gas has shifted from being an everyday necessity to a carefully rationed commodity.

Small Businesses Battle Rising Operating Costs

Restaurants, food vendors and other small enterprises have also struggled to absorb the increased cost of energy.

Many operators said they were compelled to increase food prices, reduce production, cut portion sizes or temporarily switch to charcoal in order to remain in business.

Gas retailers equally reported declining patronage as customers increasingly bought one or two kilograms instead of fully refilling cylinders.

Although recent reductions in wholesale prices have provided modest relief, marketers warned that many businesses remain exposed to sudden market fluctuations.

Regional Differences Reflect Structural Challenges

The survey found significant variations in LPG prices across Nigeria.

Southern states experienced temporary supply shortages linked to coastal depots, while northern consumers continued to pay higher prices because of transportation costs associated with moving gas over long distances from southern ports.

Ironically, even residents of gas-producing communities in the South-South complained that cooking gas had become increasingly unaffordable despite living in regions that produce much of Nigeria’s natural gas.

Experts said poor inland distribution networks, inadequate storage infrastructure and high logistics costs continue to widen regional price disparities.

Energy Transition Under Threat

The report warns that the current trend poses serious risks to Nigeria’s clean energy transition strategy.

For years, successive governments have promoted LPG as a healthier and environmentally friendly alternative to firewood and charcoal.

However, rising prices are reversing those gains as increasing numbers of households abandon cleaner fuels because of affordability concerns.

Environmental experts caution that the renewed dependence on biomass fuels could worsen deforestation, indoor air pollution and related health problems, particularly among women and children.

Government Response and Long-Term Outlook

The Federal Government has responded by engaging LPG producers and marketers to improve domestic supply while directing regulatory and security agencies to curb hoarding, diversion and market manipulation.

Authorities have also announced measures aimed at expanding local production, strengthening domestic blending initiatives and increasing supply from new gas facilities.

Industry experts welcomed the interventions but stressed that sustainable price stability will depend on deeper reforms, including expanded domestic LPG production, improved transportation infrastructure, additional storage capacity, consistent energy policies and reduced dependence on imports.

They argued that without addressing these structural weaknesses, Nigerian households will remain vulnerable to future global disruptions that quickly translate into higher cooking gas prices and renewed economic hardship.

LAGOS:

ONDO:

ABUJA:

BENUE:

KANO:

AKWA IBOM:

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