July Price For Cooking Gas Skyrocketed: Depot Or Retailers’ Fault?

July Price For Cooking Gas Skyrocketed: Depot Or Retailers’ Fault?

In July 2025, the Liquefied Petroleum Gas (LPG) market in Nigeria once again came under scrutiny as retail prices spiked across different states, leaving many households frustrated. The data we gathered from our social media community and industry monitoring sources revealed significant disparities in retail pricing, with differences of over ₦300 per kilogram between states. These differences are even more pronounced when calculated for the cost of a standard 12.5kg cylinder refill. The average price for 12.5kg cooking gas in July was ₦18,360, which depicted a ₦565 increase from June’s average of ₦17,795. While consumers are quick to attribute these price hikes to “market forces” or rising depot costs, a closer look tells a more complicated story: depot prices largely remained stable during the period. The real escalation came from retailers who adjusted their pump prices well beyond the wholesale baseline.

This raises a critical question: if depot prices did not increase, why are Nigerians paying more for cooking gas?

Retailers and the Price Mark-Up

At the retail level, operators have significant influence over final consumer pricing. Although depot prices remained steady, many retailers still raised their rates. For instance, while depot prices in Lagos, Warri, and Port Harcourt did not see a corresponding upward adjustment, households in places like Borno and Yobe paid as high as ₦1,500 per kg, translating into ₦18,750 for a 12.5kg cylinder. Meanwhile, Lagos, Ogun, and Oyo residents paid around ₦14,375 for the same refill.

This suggests that the disparity was less about supply shortages and more about retail mark-ups justified under the banner of transportation costs, operating overheads, or “anticipatory pricing.” Retailers often cite the volatility of the LPG market as a reason to build buffers into their pricing, but in practice, this has meant passing the burden onto consumers even when wholesale costs are relatively stable.

Market Consequences of Retail Price Inflation

The impact of these inflated retail prices extends far beyond household budgets.

1.Distorted Market Perception – When consumers see prices rising at the retail end despite stable depot costs, confidence in the market weakens. This breeds suspicion of profiteering and erodes trust between consumers and retailers.

2.Reversion to Traditional Fuels – With refill costs climbing above ₦18,000 in some states, many families particularly in northern regions face the painful decision of reverting to firewood or charcoal. This undermines years of advocacy for cleaner cooking and reverses progress on health and environmental sustainability.

3.Regional Inequality – Price disparities highlight structural imbalances in Nigeria’s LPG supply chain. Coastal states benefit from cheaper access to terminals, while inland states bear the brunt of transportation inefficiencies and retail price inflation.

4.Policy Gaps – The lack of effective monitoring and regulation in the downstream LPG market has allowed retailers to dictate prices unchecked. Unlike petrol or diesel, LPG pricing lacks structured oversight, which creates room for excessive profit-taking.

A Way Forward

If Nigeria is serious about expanding LPG adoption and supporting clean cooking, the pricing structure must become more transparent and equitable. Several steps could help stabilise retail prices and protect consumers:

Strengthening Monitoring – Regulators must track both depot and retail pricing to ensure mark-ups are justifiable and not exploitative.

Inland Infrastructure Investment – Building more inland depots and storage facilities would reduce dependence on coastal terminals, thereby lowering distribution costs.

Competitive Retail Environment – Encouraging more players in the LPG distribution chain can break the monopoly of certain retailers and ensure fairer pricing.

Consumer Awareness – Publicising depot price trends will empower consumers to question unjustifiable mark-ups and demand accountability.

Conclusion

The July 2025 LPG price surge was not primarily driven by depot price hikes but by retail adjustments that inflated consumer costs. While retailers argue that logistics and overheads justify their pricing, the reality is that many Nigerians are paying far above what is reasonable compared to stable depot benchmarks. If unchecked, this trend risks derailing the country’s clean cooking goals and worsening energy poverty.

Addressing the problem requires a mix of regulatory oversight, investment in inland infrastructure, and stronger consumer advocacy. Until then, the gap between depot stability and retail volatility will remain a thorn in Nigeria’s LPG market and in the pockets of everyday Nigerians.

• Lpg
• gas
• cooking gas
• july
• depot
• retailers