The Cooking Gas Crisis in Nigeria: Causes, Effects, and Future Outlook

By Akinwale Kasali

In recent days, an air of frustration envelops households and small businesses across Nigeria as Liquefied Petroleum Gas (LPG)—commonly known as cooking gas—becomes increasingly scarce. The price of this essential commodity has skyrocketed from N1,050 per kilogram to approximately N1,800 in a mere week, reflecting an alarming 34.6% increase. The 12.5 kg cylinder, which sold for N13,150 last week, has now reached a staggering price of N18,500. This rise in cost is not just a statistical anomaly; it has profound implications for daily living and general well-being.

Factors Behind the Price Surge

Several factors converge to create this crisis. A heavy reliance on imports has made Nigeria acutely vulnerable to international price fluctuations. Coupled with a weakened Naira, these dynamics exacerbate the cost of imported LPG and related expenses like transportation and insurance. Additionally, poor distribution infrastructure hampers the efficient delivery of gas to consumers, driving prices even higher.

Energy expert Tunde Mukthar highlights how the inefficiencies within Nigeria’s distribution networks lead to inflated prices. High transportation costs, particularly in rural areas, burden consumers further, reinforcing disparities in access to affordable cooking gas.

Changing Cooking Habits

As the prices continue to climb, many households are compelled to revert to less healthy cooking methods. Increasingly, families are turning to firewood as an alternative, despite government efforts aimed at boosting domestic LPG supply. This shift is concerning, given the health implications associated with smoke inhalation and the environmental degradation linked to deforestation.

Traders and vendors confirm the sentiment of discontent among consumers. For instance, Joke Banjo, a trader in Agege, expressed her frustration at failing to find cooking gas to refill her cylinder despite scouring multiple locations. Such personal stories paint a broader picture of hardship and anxiety among the populace, evoking a sense of urgency for resolution.

The Impact of Industrial Actions

The National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, sheds light on additional obstacles exacerbating the crisis. Industrial actions by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have significantly disrupted the supply chain, particularly in the Southwest. With gas plants closing and limited supply from major suppliers like Dangote, marketers find themselves in a precarious position, often forced to procure from costlier competitors.

Oladapo notes that when supply becomes limited while demand remains high, prices inevitably skyrocket. The lack of available products is a significant driver of the current economic strain on both households and businesses.

A Looming Domestic Supply Crunch

As the crisis stretches on, concerns about a potential domestic LPG supply crunch have surfaced. Energy industry analyst Yemisi Olagunju highlighted the inadequacies in the domestic market during the recent National LPG Conference held in Lagos. According to Olagunju, the continued export of cooking gas by International Oil Companies (IOCs) undermines local availability, exacerbating an already fragile situation. She urged regulatory authorities to enforce the establishment of necessary facilities for separating propane and butane, which would make more gas suitable for domestic use.

Government Interventions and Future Outlook

While the Nigerian government had previously imposed a ban on gas exports to enhance domestic supply, many Nigerians remain skeptical about the effectiveness of these measures. Despite assurances from authorities, the anticipated relief in prices and availability has yet to materialize, further contributing to public discontent.

The ongoing situation underscores a complex interplay of supply chain inefficiencies, economic vulnerabilities, and external pressures. As industry stakeholders call for more robust supply chains and governmental intervention, the path forward remains uncertain. However, calls to action resonate, urging greater visibility and accountability regarding the management of Nigeria’s LPG resources.

Community Perspectives

Local communities, such as those in Alimosho, Lagos State, have felt the brunt of this crisis, with major depots closing due to supply shortages. In Ogun State, vendors have raised their prices significantly, with reports of gas being sold at N1,600 per kilogram—a marked increase from the previous week. The sense of community frustration is palpable as residents navigate long queues at stations and grapple with the implications of enduring scarcity.

In this challenging landscape, stories like Adejoke Ibikunle’s, who had to wait in line to refill her gas cylinder, serve as a reminder of the human element underlying the statistics. Ultimately, the impacts of this cooking gas crisis extend beyond financial strain—they penetrate into the fabric of daily life, shaping both culinary practices and family routines across Nigeria.

As discussions continue around solutions and interventions, the importance of addressing this crisis cannot be overstated. The ripple effects of rising cooking gas prices affect not just individual households but also the broader economic landscape of Nigeria.