The price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has seen a notable decline across parts of the Federal Capital Territory (FCT). This development provides some relief to Abuja households after months of sustained price increases.

A Nairametrics market survey conducted on June 30, 2026, revealed that LPG now sells for between N1,498 and N1,650 per kilogram across various retail outlets and locations in Abuja. This is a significant drop from recent highs of about N2,000 per kilogram recorded in several parts of the country.

At these current prices, refilling a 5kg cylinder now costs between N7,490 and N8,250, a reduction from approximately N10,000 at the peak of the surge. Similarly, a 12.5kg cylinder refill has fallen to between N18,725 and N20,625, down from about N25,000 previously. However, some roadside vendors continue to sell LPG for as much as N1,850 per kilogram.

Market Dynamics and Expert Views

Energy analysts have welcomed the recent price decline but caution that these gains may be temporary unless structural challenges within Nigeria’s LPG market are addressed. Energy economist Dr. Dayo Abegunde noted that while improved supply conditions are suggested, Nigeria remains vulnerable to international market shocks due to its reliance on imported LPG.

Dr. Abegunde emphasized that sustained price stability requires increased domestic processing, improved storage infrastructure, and more efficient distribution networks to lower costs across the country. He stated, “The recent decline is encouraging for consumers, but Nigeria must deepen domestic production and strengthen its supply chain to avoid recurring price spikes whenever there are disruptions in the global market.”

Oil and gas analyst Edward Bulus argued that enhancing domestic refining and ensuring more LPG produced within Nigeria remains in the local market would provide greater long-term price stability. He added that while enforcement against hoarding is important, expanding infrastructure and improving market efficiency would have a more lasting impact on affordability.

LPG marketers confirm that the recent reduction reflects improved product availability at coastal depots and a gradual easing of wholesale prices. Bassey Etanem, an Abuja-based Liquefied Petroleum Gas Marketer, indicated that increased product supply has begun to filter through the distribution chain, leading to lower retail prices.

Retail operators in Abuja also attributed the price moderation to increased competition among filling plants. An LPG dealer in the Kubwa area explained, “We are seeing more product availability compared to what happened a few weeks ago. Once supply improves, retailers naturally compete for customers, and prices begin to fall.” Marketers anticipate prices will remain relatively stable if supply continues to improve and exchange rate volatility remains limited, though transportation costs for inland states remain high.

Consumer Impact and Government Response

Despite the recent relief, many households still find cooking gas expensive compared to levels before the latest price surge. Consumers expressed hope that the current decline marks the beginning of a sustained downward trend, noting that many families had resorted to using charcoal and firewood when LPG prices neared N2,000 per kilogram.

Grace Bade, a trader, highlighted the broader economic struggles, stating, “Nigerians are still struggling with low purchasing power, our income is not sufficient to meet our daily needs. The cost of transportation, food, healthcare, education, and rent has all gone up.” She urged the government to make cooking gas as affordable as N500 per kg.

The recent price moderation follows measures announced by the Federal Government to address supply constraints and curb market manipulation. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), other regulators, and security agencies to intensify market surveillance, investigate hoarding and diversion, and sanction operators manipulating prices.

Minister Ekpo reiterated the Federal Government’s commitment to increasing domestic LPG supply, reducing import dependence, and prioritizing locally produced LPG for domestic consumption. He also disclosed the government is pursuing a local LPG blending initiative involving Nigeria LNG Limited (NLNG), indigenous producers, and the Port Harcourt LPG plant operator to reduce logistics costs and improve supply reliability.

Underlying Causes and Broader Economic Context

These directives followed an emergency stakeholders’ meeting convened on June 22 to address the persistent rise in cooking gas prices. The NMDPRA attributed the recent surge to a combination of global and domestic supply challenges.

The regulator identified global supply disruptions and price volatility stemming from the Israel-Iran conflict as major drivers. Other factors included inadequate domestication of locally produced LPG, low import volumes, non-cost-reflective pricing by some wholesalers and retailers, poor distribution infrastructure, logistics bottlenecks, and supply chain constraints, all of which increased the cost of moving LPG across the country. These factors collectively pushed retail cooking gas prices to record highs before the recent moderation observed in parts of the FCT.

Industry stakeholders emphasize that sustained affordability will depend on improvements in domestic supply and distribution. Energy prices remain a major driver of inflation, particularly affecting transportation, food distribution, and small-scale businesses reliant on fuel and gas-powered operations. Earlier this month, Nairametrics reported that Nigeria’s headline inflation rate edged higher to 15.93% in May 2026, up from 15.69% in April.