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Sharing Ideas and Updates on LPG in Nigeria and related information to enable effective collaboration within the LPG Value Chain
LPG In Nigeria’s Report On The Trend Of Cooking Gas Prices In Nigeria (2021–2024)
LPG In Nigeria’s Report On The Trend Of Cooking Gas Prices In Nigeria (2021–2024)
Over the last four years, the price of Liquefied Petroleum Gas (LPG) in Nigeria has risen significantly. This increase is closely tied to the foreign exchange rate volatility, as LPG is primarily imported, and the Naira-to-Dollar exchange rate plays a critical role in determining the final retail price. Below, we break down the yearly trends in LPG prices from 2021 to 2024, showing how both global energy market dynamics and Nigeria’s fluctuating currency have contributed to the rising costs.
2021: Gradual Price Increase
In 2021, the prices of cooking gas were relatively low but showed a steady upward trajectory:
February: 4,679 Naira
March: 4,714 Naira
April: 4,606 Naira
July: 5,545 Naira
August: 6,418 Naira
September: 7,023 Naira
Yearly Average: 5,497.5 Naira
Dollar to Naira exchange rate.
Highest Price: ₦413.00 (May 14, 2021)
Average Price: ₦403.12
Lowest Price: ₦379.50 (April 27, 2021)
The Naira/USD exchange rate fluctuated between ₦379/$1 and ₦413/$1, leading to higher costs for importers. As LPG is purchased in dollars but sold in Naira, any depreciation of the Naira directly increases the price of cooking gas. The relatively low prices in 2021 compared to subsequent years reflected a more stable forex market, but signs of volatility began to appear towards the year's end.
2022: A Notable Spike
Available data for September 2022 shows a significant increase to 9,773 Naira, marking a sharp rise compared to the September 2021 price of 7,023 Naira.
Yearly Average: 9,773 Naira (based on available data).
Dollar to Naira exchange rate.
Highest Price: ₦448.84 (December 19, 2022)
Average Price: ₦423.75
Lowest Price: ₦411.79 (January 3, 2022)
By 2022, the price of LPG began to rise more noticeably and one of the key reasons for this rise was the further depreciation of the Naira, with the exchange rate moving between ₦411/$1 and ₦448/$1. Importers faced rising costs due to this exchange rate fluctuation, which was passed on to consumers. The global energy crisis, triggered by the Russia-Ukraine conflict, also contributed to higher international gas prices, further compounding the issue in Nigeria.
2023: Relative Stability with Gradual Increase
2023 saw a more consistent price trend compared to previous years, with monthly averages ranging from 8,318 Naira in June to 13,190 Naira in November:
January: 10,036 Naira
February: 9,840 Naira
June: 8,318 Naira (the lowest in 2023)
December: 12,253 Naira
Yearly Average: 10,411 Naira
Dollar to Naira exchange rate.
Highest Price: ₦897.50 (December 28, 2023)
Average Price: ₦633.83
Lowest Price: ₦447.46 (January 2, 2023)
In 2023, Nigeria experienced one of the most dramatic spikes in LPG prices, with the highest price for a 12.5kg cylinder reaching ₦12,252 in December. A major factor driving this surge was the Naira’s steep depreciation after the liberalization of the foreign exchange market by the new government. The exchange rate rose to around ₦897/$1 by the year’s end. This sharp increase in the cost of importing LPG, combined with inflationary pressures and a global energy crisis, resulted in a substantial rise in cooking gas prices. While prices stabilized mid-year, the impact of the Naira's depreciation continued to push prices up, especially in the final quarter of 2023.
2024: Marked Price Surge
The year 2024 recorded the most dramatic increase in cooking gas prices, peaking at 17,527 Naira in December:
January: 12,842 Naira
February: 16,812 Naira
June: 12,830 Naira (lowest in 2024)
October: 17,226 Naira
December: 17,527 Naira
Yearly Average: 15,431 Naira
Dollar to Naira exchange rate.
Highest Price: ₦1,685.62 (November 27, 2024)
Average Price: ₦1,465.04
Lowest Price: ₦871.44 (January 18, 2024).
2024 marked a record-breaking surge in the price of cooking gas, with the highest price reaching ₦17,527 by December. This steep rise was driven by the continued depreciation of the Naira, with the exchange rate surpassing ₦1,200/$1 in some markets. Importers of LPG struggled to maintain a steady supply as the cost of foreign exchange soared, and inflationary pressures within Nigeria exacerbated the situation.
Consumers, particularly in rural and low-income households, felt the impact the most, with many struggling to afford cooking gas. The rising prices also sparked public outcry, as more Nigerians turned to alternative, less eco-friendly fuels like firewood and charcoal, which present health and environmental risks.
This sharp escalation reflects continued pressures from global energy markets, inflation, and increased seasonal demand during the last quarter. Now you can go back to prior blog posts to see how we explored the spikes and dips in LPG prices across the country and let us know your feedback.
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