Gas Price in Nigeria: Current Trends and Insights for 2025

The gas price in Nigeria has been a subject of significant interest, especially in 2024, as the nation continues to grapple with the impact of global economic changes, inflation, and local market dynamics. For households and businesses reliant on liquefied petroleum gas (LPG), understanding the trends in gas prices is crucial for budgeting, planning, and minimizing expenses. This article delves into the current gas price in Nigeria, exploring the factors influencing its fluctuations and offering insights into the future outlook for LPG prices in the country.

Overview of Gas Prices in Nigeria (2025)

As of 2024, the price of gas in Nigeria has seen noticeable shifts, largely due to inflation, changes in government policy, and international market pressures. The most commonly used gas in Nigerian households is liquefied petroleum gas (LPG), which is primarily used for cooking, heating, and even fueling some vehicles. LPG prices in Nigeria are subject to a range of external and internal factors, including global oil prices, local supply and demand, and government regulations.

In general, the price of gas in Nigeria varies depending on the region, as distribution costs can be higher in remote areas. However, the following gives a snapshot of the general price ranges for LPG:

• 20 kg Cylinder: The price for a 20 kg gas cylinder in Nigeria as of 2024 ranges from ₦8,000 to ₦11,000, depending on the location and the supplier.
• 12.5 kg Cylinder: For 12.5 kg gas cylinders, prices range between ₦5,000 and ₦7,000, with significant price differences between urban and rural areas.
• 5 kg Cylinder: Smaller cylinders, such as the 5 kg LPG cylinder, are priced between ₦2,500 and ₦3,500.

The prices for LPG gas refill are influenced by several factors, including the price of crude oil on the global market and exchange rate fluctuations.

Factors Influencing Gas Prices in Nigeria

Understanding the fluctuations in the gas price in Nigeria requires an examination of the key factors that drive the cost of LPG in the country. These include global oil market trends, domestic supply challenges, government policies, and economic conditions.

1. Global Oil Price Trends

Nigeria, being an oil-producing country, is affected by the global price of crude oil. The international market sets the benchmark for the price of LPG, as it is a by-product of crude oil refinement. When global oil prices rise, there is often an increase in the price of LPG in Nigeria, especially if the Naira weakens against the Dollar.

• Crude Oil Price Impact: A surge in crude oil prices directly impacts the price of LPG gas, as Nigeria imports much of the refined gas. For example, an increase in the price of Brent crude oil often causes an increase in gas prices due to rising importation costs.

2. Exchange Rate Fluctuations

The exchange rate between the Naira and major currencies, particularly the US Dollar, significantly influences the cost of importing LPG into Nigeria. If the Naira weakens, the cost of imports, including LPG, rises. This can lead to higher gas prices for consumers, as importers pass on the increased costs.

• Dollar to Naira Exchange Rate: As of 2024, fluctuations in the Dollar-to-Naira exchange rate remain a critical factor in determining the price of LPG.

3. Domestic Supply and Distribution Challenges

The supply chain for LPG in Nigeria faces numerous challenges, which can contribute to price variations. These challenges include poor infrastructure, logistical bottlenecks, and occasional shortages. Disruptions in supply, whether caused by strikes, transportation issues, or refinery problems, can lead to sudden price hikes.

• Lack of Adequate Infrastructure: The underdeveloped infrastructure in Nigeria, including roads and storage facilities, can impede the timely distribution of gas, thus increasing prices in certain areas, especially rural regions.

4. Government Policies and Regulations

The Nigerian government’s policies on fuel subsidies, importation restrictions, and regulatory interventions also affect gas prices. In recent years, the government has sought to deregulate the gas sector, which could lead to fluctuations in pricing as market forces take a larger role in determining costs.

• Subsidy Removal: The removal of fuel subsidies in recent years has contributed to higher gas prices, as the government no longer provides financial support for domestic LPG production and distribution.

5. Seasonal Demand

During certain times of the year, especially during the holiday seasons or the dry season when there is more cooking and heating, the demand for LPG increases. This increased demand can cause prices to rise, especially in urban areas where LPG use is higher.

• Peak Seasons: Prices may surge during festive periods like Easter, Christmas, and New Year as more people cook at home and purchase larger quantities of LPG.

How Gas Prices Vary Across Nigeria

While the price of gas in Nigeria is generally uniform across the country, there are notable price differences between regions due to factors such as transportation costs, local market conditions, and availability. Urban areas like Lagos, Abuja, and Port Harcourt typically have more competitive gas prices due to better access to suppliers and distribution centers.

• Urban vs. Rural Areas: Urban centers tend to have more consistent prices, while rural areas may experience higher costs due to logistical challenges in transporting LPG cylinders.
• Local Market Variations: Prices can vary from one vendor to another, and discounts or bulk purchase offers may be available in some regions.

Price Differences by Region

• Lagos and Abuja: In major cities like Lagos and Abuja, the price of LPG for a 12.5 kg cylinder typically hovers around ₦5,000 to ₦7,000.
• Northern Nigeria: In northern states, where access to gas might be more challenging, prices for similar cylinders could rise by ₦1,000 to ₦2,000 due to distribution challenges.

Price Comparison for Domestic and Commercial Gas Use

While the price of LPG in Nigeria for household use is relatively stable, businesses such as restaurants, hotels, and food vendors often require larger quantities of gas. As a result, commercial gas prices may differ from residential prices due to bulk purchases, longer delivery times, and higher storage capacities.

• Domestic Use: For home cooking, the cost of gas refills for smaller cylinders (5 kg to 12.5 kg) is generally affordable, although price increases in the international market may push local prices higher.
• Commercial Use: Large businesses that rely on LPG, such as restaurants, bakeries, and food processing companies, may experience price variations based on their supply contracts and bulk purchasing agreements.

Future Outlook for Gas Prices in Nigeria

Looking ahead, the price of LPG gas in Nigeria is expected to continue fluctuating based on a variety of internal and external factors. While the government has made strides in promoting the use of LPG as an alternative to kerosene and firewood, challenges in infrastructure, supply chain management, and inflation may continue to push prices higher.

• Increase in Domestic Production: One promising factor for the future is the Nigerian government’s ongoing efforts to increase domestic gas production and reduce dependence on imports, which could help stabilize prices over time.
• Policy Reforms: If there are significant policy changes aimed at improving LPG access and reducing market inefficiencies, the price of gas may become more predictable and affordable.

Conclusion

The gas price in Nigeria is subject to a variety of complex factors, including global oil prices, exchange rate volatility, local supply and demand, and government policy. As of 2024, consumers are witnessing a range of prices depending on the type of cylinder and location. While LPG gas remains a popular cooking fuel due to its cost-effectiveness and environmental benefits, prices continue to be affected by both local and international influences. By staying informed about the latest trends and being mindful of the factors affecting gas prices, Nigerians can better navigate the challenges of LPG consumption and manage their energy costs effectively.