The scarcity of liquefied petroleum gas, widely used for cooking, intensified over the past week, particularly in the South-West states such as Lagos, Ogun, and Oyo, where residents reported long queues at filling stations and depleted stocks at many outlets. In Lagos areas like Surulere, Festac, and Ijeshatedo, the price for refilling a 12.5 kg cylinder escalated to between N22,500 and N43,750, with per-kilogram rates reaching as high as N2,800 to N3,500. Similar trends were observed in Abuja, where cooking gas sold for up to N1,400 per kilogram, and in other cities like Ibadan and Port Harcourt, forcing many families to ration their usage or switch to alternatives like firewood and kerosene. Nationwide, the cost of a 12.5 kg cylinder climbed from around N17,500 to N25,000 in some locations, marking a significant burden on household budgets amid already high living expenses.
The root of the crisis traces back to a combination of operational hurdles, including routine maintenance at the Dangote Refinery and a subsequent industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN). The union's strike, which protested the dismissal of approximately 800 workers at Dangote, halted loading and distribution activities for several days, creating bottlenecks in the supply chain. This action, suspended on October 1 following government intervention and a court order, coincided with delays in vessel berthing at Lagos terminals, further slowing the offloading of gas shipments from NLNG. Energy experts noted that the disruptions led to a temporary supply vacuum, exacerbated by importers' reluctance to enter the market due to competitive pricing pressures from local producers. In regions like the South-South and East, supplies remained relatively stable, highlighting the uneven impact of the issues, which were more pronounced in high-demand areas of the South-West.
Adding to the challenges, some retailers capitalised on the panic buying that ensued, deliberately inflating prices on existing stocks rather than maintaining standard rates. This opportunistic behaviour contributed to the artificial nature of the price spike, as described by industry leaders. Nigeria's gas supply network, despite advancements in local production, continues to face vulnerabilities from inadequate infrastructure, limited storage capacity, and susceptibility to weather or labour-related interruptions. Although domestic LPG sales saw a 22 per cent year-on-year increase to 65,632 metric tonnes in March 2025, periodic shortages persist, partly because a portion of produced gas is still directed toward exports instead of fully prioritising local bottling and distribution.
In response to the turmoil, supply chains are now normalising, with terminals resuming trucking operations and clearing backlogs. Dangote Refinery, a major domestic supplier, restarted sales last Wednesday at an ex-depot price of N810 per kilogram before further reducing it to N760 per kilogram, undercutting competitors like Matrix, Ardova, A.Y.M Shafa, NIPCO, and Stockgap, which range from N910 to N950 per kilogram. This adjustment has been hailed as a stabilising measure, creating a price gap of N150 to N190 per kilogram compared to other depots. Meanwhile, NLNG, which since January 2022 has pledged to allocate 100 per cent of its butane and propane output to the Nigerian market under the Decade of Gas initiative, has seen renewed uptake by marketers to bridge the gaps left by the strike. The company's Domestic LPG scheme, operational since 2007, aims to enhance access to clean energy, and its Bonny Island facility remains a cornerstone for meeting national demand.
Officials from the Nigerian National Petroleum Company Limited have assured the public that the price increases are temporary, stemming from two to three days of delayed movements rather than fundamental cost escalations. Group Chief Executive Officer Bayo Ojulari emphasised that as distribution catches up, prices should revert to pre-crisis levels within weeks, urging consumers to avoid stockpiling to prevent further volatility. Similarly, Olatunbosun Oladapo, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, confirmed that the scarcity is regional and not nationwide, predicting that full normalisation could occur in one to two weeks as products from Dangote and NLNG flow more freely. He also called out terminal operators for marking up prices, noting that they acquire gas at N9 million per 20 metric tonnes from the Nigeria LPG plant but resell to marketers at N16.8 million, contributing to downstream cost pressures.
For consumers, the ongoing high prices have sparked widespread frustration, with women in affected areas expressing particular distress over the added financial strain. Queues at stations like those operated by Mobil, NNPCL, and NIPCO, where gas is available at slightly lower rates of N1,100 to N1,300 per kilogram, underscore the urgency of the situation. As supplies from NLNG and Dangote ramp up, experts anticipate a gradual decline in retail prices, potentially dropping back to around N1,200 per kilogram. This shift could encourage a broader transition to cleaner cooking fuels, aligning with national goals to reduce reliance on traditional biomass sources. In the interim, industry stakeholders recommend patience, as the combined efforts of producers and distributors work to restore equilibrium in the market.