From The Filling Station To The Kitchen: Rising Energy Costs Stretch Nigerian Families

By NINI NDUONOFIT-AKOH

NIGERIAN households are facing another round of pressure as rising energy costs increasingly stretch family budgets.

The latest increase in cooking gas prices has come on top of higher transportation costs following the recent rise in petrol prices.

In Lagos, Liquefied Petroleum Gas (LPG) was reported at about ₦1,600 per kilogramme at retail outlets, while consumers in parts of the Southwest were paying as much as ₦1,500.

The increases have added another expense to household budgets already under strain from transportation, food and other basic needs.

The Cost of Filling a Cylinder

Checks across Lagos, Osun, Oyo and Ogun showed significant differences between plant and retail prices.

At the plants, LPG sold for about ₦1,350 per kilogramme in Lagos, ₦1,300 in Osun, ₦1,200 in Oyo and ₦1,400 in Ogun.

Retail prices were higher in some locations, reaching about ₦1,600 per kilogramme in Lagos and ₦1,500 in Osun, while Oyo recorded about ₦1,300.

For a household using a standard 12.5kg cylinder, the difference is substantial.

At ₦1,600 per kilogramme, a refill would cost about ₦20,000.

In Osun, the same cylinder would cost about ₦18,750 at ₦1,500 per kilogramme.

For families that refill regularly, the expense becomes part of a growing list of essential bills.

Transport Costs Add to the Pressure

The cooking-gas increase comes as households continue to adjust to higher transportation costs following the rise in petrol prices.

For many families, these expenses are connected.

Higher petrol prices can raise the cost of moving people and goods. Higher transport costs can then affect the prices of food and other household necessities.

Cooking gas adds another direct expense.

Adesola Omotosho, a Lagos consumer, said families were still trying to absorb the impact of higher petrol and transport costs when the latest LPG burden emerged.

According to her, households are increasingly forced to stretch the same income across transportation, food and cooking fuel.

She questioned whether families would eventually return to kerosene and firewood if clean cooking became too expensive.

The Burden Reaches Small Businesses

The pressure is not limited to households.

Food vendors, restaurants and other small businesses that depend on LPG also face higher operating costs.

When cooking fuel becomes more expensive, businesses have to decide whether to absorb the additional cost or pass it on to customers.

Either way, households can feel the effect.

A food vendor who spends more on energy may increase the price of prepared meals.

A restaurant may adjust its menu prices.

Small businesses may also reduce operating hours or cut other expenses to remain viable.

That creates another channel through which energy prices can affect household purchasing power.

Why LPG Prices Differ

Olatunbosun Oladapo, Managing Director of DAPNIK Gas Plant, cautioned against treating the highest retail prices as evidence of a uniform increase across the country.

He said his Ibadan plant was selling LPG at about ₦1,150 per kilogramme.

According to him, some outlets in Lagos could also sell within the range of ₦1,100 to ₦1,150 per kilogramme.

The difference, he explained, can partly reflect distribution costs.

A distributor buying from a plant must factor transportation, labour and other operating expenses into the final selling price.

For consumers who travel long distances to purchase smaller quantities, the total cost can rise further once transportation is considered.

Supply Still Falls Short

Energy lawyer and oil and gas expert Dr Ayodele Oni offered a broader explanation for the persistent price pressure.

He argued that increased domestic production does not automatically guarantee lower prices for consumers.

International propane and butane prices, shipping and insurance, foreign-exchange movements and domestic transportation costs can all affect the final price.

Oni described the situation as one in which domestic supply alone does not necessarily translate into affordable domestic pricing.

NMDPRA data cited in the report showed that Nigeria supplied 565,106 tonnes of LPG between January and 18 June 2026, against a benchmark requirement of 657,072 tonnes.

That represented a shortfall of 91,966 tonnes. The regulator’s figures put supply coverage at about 86 per cent of estimated demand during the period.

Global Shocks Also Matter

Nigeria’s LPG market has also been exposed to international supply disruptions.

Earlier in the year, LPG demand fell to about 123,000 tonnes in June, according to Argus data cited in the report.

The decline coincided with lower domestic production and tighter import conditions during an Iran-related global supply disruption.

Imports subsequently rose sharply to about 46,000 tonnes in June, from 3,000 tonnes in May and zero in April.

The market later received some relief as international LPG prices declined and domestic production recovered.

These developments demonstrate how domestic consumers can remain exposed to events beyond the Nigerian market.

The Inflation Picture Is Mixed

The wider economic picture provides a more complicated backdrop.

The National Bureau of Statistics reported that headline inflation eased slightly to 15.39 per cent in August 2026 from 15.43 per cent in July.

However, food inflation remained much higher at 19.57 per cent year-on-year.

That means the pace of price increases slowed, but households were still paying considerably more for many goods than a year earlier.

For families already allocating a large share of income to food and transportation, another increase in cooking fuel can therefore have an immediate effect on household choices.

The Clean-Cooking Risk

Oni warned that sustained increases in LPG prices could undermine Nigeria’s clean-cooking transition.

Low-income households that cannot afford regular LPG refills may reduce their consumption or return to charcoal and firewood.

That could create wider environmental and public-health concerns while reversing efforts to move households towards cleaner cooking options.

The issue therefore extends beyond the price of a cylinder refill.

It touches energy access, household welfare and the country’s broader clean-cooking goals.

A Wider Household Squeeze

Former Vice President Atiku Abubakar has also linked rising food, transportation and energy costs to worsening household welfare and child malnutrition.

In a statement issued by his media aide, Phrank Shaibu, Atiku cited nutrition figures showing high levels of stunting among Nigerian children and argued that economic hardship was affecting families’ ability to provide adequate food.

His comments form part of a wider political debate over the social effects of Nigeria’s economic reforms and the measures required to cushion vulnerable households.

The claims and proposed interventions remain matters of political argument, but the underlying household challenge is broader: families must increasingly decide how to distribute limited income among food, transport, energy, education and healthcare.

The Question Beyond Production

The latest LPG pressure highlights a structural question for Nigeria’s energy market.

Increasing domestic production is important, but it may not be enough if storage, transportation, pricing, distribution and supply infrastructure remain weak.

Oni called for stronger domestic supply arrangements, greater transparency in depot pricing and improved storage and distribution infrastructure.

For consumers, the test is ultimately simple.

More domestic energy should translate into greater availability and, where market conditions permit, more predictable and affordable prices.

Until that happens, the cost of moving goods, cooking meals and running small businesses will continue to feed into the wider cost-of-living debate.