Cooking gas prices climb as global energy costs impact Nigerian households

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Keypoints

• The average price of a 5kg cylinder of cooking gas (LPG) rose by 12.60 per cent in one month, reaching N7,655.73 in March 2026.
• Larger 12.5kg cylinders saw an even steeper monthly increase of 15.62 per cent, jumping from N16,997.94 in February to N19,652.83.
• Regional price disparities are significant, with Kaduna recording some of the highest prices for both sizes, while Bauchi and Ondo recorded the lowest.
• Experts attribute the surge to the U.S.–Iran conflict, which has driven up global Brent crude and LPG benchmarks.
• Domestic prices remain sensitive to the foreign exchange rate, as a large portion of Nigeria’s gas supply is still imported or priced against the U.S. Dollar.

Main Story

The cost of preparing a home-cooked meal is becoming significantly more expensive for Nigerians.

According to the March 2026 Cooking Gas Price Watch released by the National Bureau of Statistics (NBS) on Tuesday, the retail price for Liquefied Petroleum Gas (LPG) has seen a double-digit percentage increase in just thirty days.

A 5kg refill now costs an average of N7,655, while the 12.5kg refill is nearing the N20,000 mark.

Economist Opeyemi Alabi noted that the “energy spike” is largely a byproduct of the ongoing war between the U.S. and Iran.

Since LPG is a globally traded commodity, the disruption in Middle Eastern supply chains has pushed international benchmarks higher.

Even gas produced locally by Nigeria LNG (NLNG) is often indexed to these global dollar prices, meaning that whenever the Naira fluctuates or global crude prices rise, Nigerian kitchens feel the heat.

In states like Kaduna and Nasarawa, residents are paying the highest premiums, partly due to the added logistical costs of transporting gas to the northern interior.

The Issues

The primary challenge is the import-dependency gap; despite being a major gas producer, Nigeria still imports a significant volume of its domestic LPG, making local prices slaves to the international market and dollar exchange rates. Authorities must solve the problem of logistical-inefficiency, as the vast price difference between states like Ondo (N4,598 for 5kg) and Kaduna (N9,212) indicates that internal transport costs and localized shortages are driving inflation.

Furthermore, there is a household-poverty risk; as gas becomes unaffordable, many low-income families may revert to using charcoal or firewood, which increases deforestation and creates respiratory health risks. To succeed, the government must incentivize more local investment in LPG “last-mile” infrastructure and ensure that a larger percentage of NLNG’s production is dedicated to the domestic market at a decoupled, Naira-based price.

What’s Being Said

• “LPG is a globally traded commodity often priced in US Dollars. Devaluation of the Naira can immediately increase the landing cost,” stated Opeyemi Alabi.
• The NBS report highlighted that Kaduna recorded the highest average price for 5kg at N9,212.21.

What’s Next

• The Federal Government is expected to come under increased pressure to provide subsidies or tax waivers on LPG equipment to bring down retail costs.
• Market analysts anticipate that prices will remain high through Q2 2026 unless there is a de-escalation of tensions in the Middle East.
• More households are likely to explore alternative energy sources, potentially leading to a temporary drop in gas demand if prices exceed the N20,000 threshold for 12.5kg across more states.
• Regulators are anticipated to look into price monitoring at the state level to ensure that the massive price gaps between regions are not caused by illegal hoarding or over-charging by retailers.

Bottom Line

The 15 per cent jump in cooking gas prices in just one month is a major blow to the average Nigerian’s disposable income. Until the country can fully decouple its domestic gas prices from global dollar benchmarks and fix its internal distribution hurdles, the cost of a basic meal will continue to be dictated by events happening far beyond Nigeria’s borders.