Liquefied petroleum gas (LPG) depot prices in Lagos have risen by ₦200 per kilogramme in two days, with Navgas, Ardova and Nipco increasing their rates from ₦1,050/kg to ₦1,250/kg, according to prices tracked by Petroleumprice.ng.
The latest adjustment, recorded on Wednesday, September 16, represents a 19.05 percent increase from the ₦1,050/kg price recorded at the three depots on September 14.
The increase comes amid growing volatility in international energy markets, as the escalating Middle East crisis disrupts critical oil transportation routes and raises concerns about global energy supply.
A major concern is the shutdown of Saudi Arabia’s East-West Pipeline following an attack. The pipeline transports crude from eastern Saudi Arabia to the Red Sea port of Yanbu, offering an alternative to routes through the Strait of Hormuz.
The pipeline’s continued closure has raised concerns about Saudi Arabia’s ability to maintain crude export flows if the disruption persists, adding to uncertainty in global oil markets.
Meanwhile, restrictions on Iranian oil exports and disruptions around major shipping routes have intensified concerns about the stability of energy supplies, with potential implications for petroleum product prices in importing markets such as Nigeria.
Against this backdrop, LPG availability in Lagos is reportedly tightening, with limited depots holding product. The supply constraint is adding pressure to local prices as marketers compete for available stock.
Marketers linked to Dangote Refinery have also increased their LPG prices from ₦1,000/kg to ₦1,150/kg, further reflecting the upward movement across supply channels.
The combination of international energy market uncertainty and limited local product availability raises concerns about a possible LPG shortage in Lagos if supply constraints continue.
The depot price increases could gradually filter through to retail outlets, where transportation, distribution, and other operating costs are added. This could leave households paying more to refill their cooking gas cylinders if the upward trend persists.