A prolonged supply shortfall across Lagos depots is tightening Liquefied Petroleum Gas (LPG) availability in Nigeria’s commercial hub, with marketers and distributors warning that continued disruptions could trigger fresh increases in cooking gas prices.
Market sources told Petroleumprice.ng that Lagos has witnessed sustained LPG supply disruptions for about two weeks, with loading activities across major depots severely affected by product shortages.
Industry operators said Techno Oil currently remains the only depot actively selling LPG in Lagos, with the company reportedly dispensing product at about ₦1,275 per kilogram as of Friday.
The supply disruption has already started affecting product availability across parts of Lagos and surrounding distribution corridors, according to downstream sources familiar with depot operations.
Operators said the shortage has significantly reduced loading opportunities for marketers, creating mounting pressure within the domestic cooking gas supply chain.
Some industry participants warned that if supply conditions fail to improve, retail LPG prices could approach the ₦2,000 per kilogram threshold in several markets.
The situation marks the second consecutive week of supply constraints at Lagos depots, intensifying concerns over possible scarcity and wider price volatility in Nigeria’s LPG market.
Market participants linked the worsening supply conditions partly to disruptions in the international energy market caused by ongoing tensions between Iran and the United States, which have continued to trigger sharp volatility across global oil and gas markets.
Within the last 24 hours alone, global crude prices recorded sharp swings amid changing market sentiment surrounding the Middle East conflict and ongoing diplomatic negotiations between Washington and Tehran.
Brent crude climbed above $108 per barrel early Thursday after renewed concerns over supply risks linked to Iran, before falling later in the day toward the $102 range on improving diplomatic signals. Prices rebounded again early Friday, with Brent rising above $105 per barrel as traders reassessed the likelihood of a near-term peace agreement.
Operators noted that the volatility in international energy markets has started reflecting across Nigeria’s LPG supply chain, especially as import costs, vessel movements and product availability remain sensitive to geopolitical developments.
Industry stakeholders also noted that Lagos remains Nigeria’s largest LPG distribution hub, meaning supply disruptions within the state often affect product availability and pricing across multiple regions.
The pressure on supply comes at a time when households and commercial users continue to grapple with elevated energy costs and broader inflationary pressures.
Analysts within the downstream sector said prolonged shortages could further tighten market conditions, particularly if fresh product inflows into Lagos depots remain limited.