Nigeria's Liquefied Petroleum Gas (LPG) market is showing strong signs of a major price correction as product availability improves significantly across coastal depots, with wholesale prices falling to as low as ₦1,100 per kilogramme from an average of ₦1,500/kg recorded just days ago.
Checks by Petroleumprice.ng on Monday showed that Lagos depots have been flooded with fresh LPG supplies, ending the supply squeeze that pushed prices above ₦1,500/kg and, at the peak of the crisis in some locations, close to ₦2,200/kg. Unlike previous weeks when only a handful of depots had products available, numerous depots are now actively offering LPG, signalling a marked improvement in supply conditions.
The latest depot prices show that the market correction is accelerating as competition intensifies among suppliers. Techno Oil is currently offering LPG at ₦1,095/kg, the lowest depot price in Lagos, while Navgas, Nipco, Mobil (11 Plc) and Ardova are all selling at ₦1,100/kg. In the Niger Delta, Matrix Energy is supplying LPG from its Warri depot at ₦1,150/kg. The narrowing price gap among major depots underscores the growing availability of products and suggests that marketers are now competing on price as supply continues to improve.
The sharp decline reflects a market that has shifted from scarcity to competition. As more import cargoes arrive and domestic production improves, marketers are increasingly competing for buyers instead of struggling to source products. Industry participants say storage facilities that were previously running low now hold healthier inventories, reducing pressure on prices.
The improvement follows coordinated interventions by the Federal Ministry of Petroleum Resources (Gas) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) after the recent spike in cooking gas prices. The Ministry convened an emergency stakeholders' meeting involving producers, marketers, terminal operators, regulators, the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to tackle hoarding, diversion, artificial scarcity and other market distortions. The meeting also agreed on tighter market monitoring, improved supply coordination, expanded storage and distribution infrastructure, stronger product-tracking systems and increased domestic supply.
The interventions are already yielding measurable results. According to the NMDPRA, national LPG supply sufficiency improved from 11 days to 22 days, while average daily supply increased from 4,262 metric tonnes in May to 5,040 metric tonnes in June, easing supply pressures across the country.
Industry experts told Petroleumprice.ng that depot LPG prices could fall to around ₦900/kg in the coming weeks if the current surge in supply is sustained. They attributed the outlook to improved domestic production, increased imports, stronger inventory levels and growing competition among depots, noting that the shift from scarcity to ample supply is expected to drive wholesale and retail prices lower, bringing much-needed relief to consumers.