Depot owners across Nigeria have increased the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by an average of ₦100 per kilogram, following the latest spike in global crude oil prices.
Market checks conducted by Petroleumprice.ng on Tuesday show fresh upward adjustments across major storage terminals.
Nipco is now selling at ₦950 per kilogram, Navgas at ₦900 per kilogram, while Techno Oil is dispensing at ₦885 per kilogram.
The new pricing structure represents a sharp rise from the previous market average of about ₦800 per kilogram before the latest adjustment.
Crude Rally Drives Downstream Reaction
As of 9:30 a.m. WAT, Brent crude was trading at 80.63 dollars per barrel, up 2.89 dollars or 3.72 percent. West Texas Intermediate stood at 73.75 dollars per barrel, gaining 2.52 dollars or 3.54 percent.
The crude oil rally follows heightened geopolitical tensions in the Middle East, particularly concerns over potential supply disruptions linked to instability around the Strait of Hormuz. The corridor remains a critical artery for global oil flows, and fears of restricted movement have triggered risk premiums across international markets.
The surge in global benchmarks has immediately filtered into Nigeria’s downstream sector, where import-dependent products such as LPG are highly sensitive to international pricing dynamics and foreign exchange exposure.
Market Sentiment and Replacement Cost Concerns
Depot operators cited rising replacement costs as the primary reason for the latest cooking gas price hike. With crude benchmarks climbing above the 80-dollar mark, market participants are adjusting ex-depot prices to reflect anticipated higher landing costs for subsequent cargoes.
Traders noted that volatility in the global oil market has heightened caution among suppliers, prompting rapid price recalibration to avoid inventory losses.
The latest increase adds further pressure on households and small businesses that rely heavily on LPG for domestic and commercial energy needs, as the downstream market continues to react to developments in the international oil landscape.