Nigeria's Cooking Gas Market: A Breath of Relief as Prices Decline in March 2025
The latest reports from LPG In Nigeria reveal a positive shift in the country's cooking gas market. According to data gathered up to March 2025, Nigerian households and industry stakeholders have witnessed a welcome decline of 5.42% in the average retail price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, compared to February 2025.
This development comes at a crucial time as the federal government continues to push for cleaner energy adoption. This blog post delves into the details of this price reduction, regional variations, and what it signifies for the Nigerian LPG market.
National Average and Key Price Points
In March 2025, the average cost of a 12.5kg cylinder of LPG stood at ₦15,085, a decrease from the February average of ₦15,950. This represents a significant reduction of ₦865 month-on-month.
The price per kilogram ranged from ₦950 to ₦1,450 across the nation. The lowest price recorded was ₦11,875 for a 12.5kg cylinder in Oru Ijebu, Ogun State (₦950/kg). Conversely, Minna, Niger State, recorded the highest price at ₦18,125 for the same quantity (₦1,450/kg).
These figures underscore the persistent regional disparities in access, distribution costs, and overall market dynamics within Nigeria.
Regional Price Variations and Observations
A closer look at the regional price analysis reveals interesting trends. In the Southwest Nigeria, prices varied considerably, with Ogun State generally exhibiting more affordable rates (e.g., ₦12,500 in Lafenwa, Ijebu Ode, and Ijebu Igbo).
However, urban areas like Lagos (₦16,250 in Ojo, ₦15,000 in Ijede & Sabo Ikorodu) and higher-cost towns like Ago Iwoye (₦17,500) showed significantly higher prices.
The North Central region generally experienced prices above the national average, with Minna leading as the most expensive location nationwide.
In contrast, the South-South region, despite coastal access, did not show significantly reduced costs, suggesting potential inefficiencies in transportation and distribution.
The Southeast offered some relief, with Enugu (₦13,750) showing better affordability compared to Imo (₦15,000). Interestingly, inland Southwest states like Ekiti (₦16,875) and Ondo (₦16,250) were more expensive than neighboring Ogun or Ibadan.
Cheapest and Most Expensive Locations
The top five cheapest locations for a 12.5kg LPG cylinder in March 2025 were predominantly in the South-West, including:
- Oru Ijebu (₦11,875)
- Lafenwa, Ijebu Ode, Ijebu Igbo (all at ₦12,500)
- Kwara State (₦13,125)
These areas likely benefit from proximity to distribution hubs and lower transportation costs.
On the other hand, the top five most expensive locations highlighted significant regional disparities, with:
- Minna (₦18,125)
- Ago Iwoye (₦17,500)
- Ekiti State (₦16,875)
- Delta State (₦16,875)
- Cross-River State (₦16,875)
Factors contributing to these higher costs may include increased transportation expenses, supply limitations, or restricted access to bulk LPG infrastructure.
Implications and the Way Forward
The 5.42% decrease in cooking gas prices in March 2025 offers a positive outlook for Nigerian households, potentially easing some financial burdens associated with cooking fuel.
However, the significant regional price variations highlight the need for improved infrastructure, efficient distribution networks, and policies that ensure more equitable access to affordable LPG across the country.
Monitoring these price trends remains crucial for both consumers and stakeholders in the LPG value chain.
Conclusion
The decline in cooking gas prices in Nigeria from February to March 2025 is a welcome development, indicating a positive shift in the market.
While the national average shows a decrease, the persistent regional disparities emphasize the need for targeted interventions to ensure affordability and accessibility for all Nigerians as the nation continues its push towards cleaner energy adoption.
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