Despite a recent dip in global crude oil benchmarks, Liquefied Petroleum Gas (LPG) prices in Nigeria have defied expectations, surging across key depots nationwide. This unexpected rise is raising eyebrows, especially as Brent crude and WTI prices hovered at $67.11 and $63.30 per barrel, respectively, showing no upward momentum.
LPG Prices in Nigeria Surge Across Depots in April
As of April 28, 2025, LPG prices in Nigeria climbed sharply at key depots. Most depots now sell LPG above ₦975/kg.
For example:
- Fynefield and Bulk Strategic priced LPG at ₦1,010/kg.
- Rain Oil topped the list at ₦1,045/kg.
- Sigmund and Mainland stayed around ₦875/kg.
- Prudent Oghara offered LPG at ₦996/kg.
In addition, NIPCO, ARDOVA, and 11PLC depots all raised prices by ₦25/MT last week. Their rates increased from ₦950 to ₦975 per metric ton.
On the other hand, DANGOTE Depot remained unchanged at ₦830/MT. This lack of movement reflects poor price recovery compared to competitors.
These figures stand in contrast to broader petroleum product trends, where petrol and diesel prices have either dropped or stabilized due to market corrections and increased supply from Dangote Refinery.
Why Are LPG Prices Bucking the Trend?
Unlike petrol or diesel, LPG pricing is more sensitive to domestic logistics, seasonal cooking demand, and supply bottlenecks. With fewer vessels arriving carrying LPG and a lack of sufficient terminal infrastructure, Nigeria continues to face volatile gas pricing even in times of crude oil relief.
Additionally, currency volatility plays a major role. The naira continues to trade at a black market average of ₦1,560/$, while the Central Bank rate stands at ₦1,552.53/$, putting added cost pressure on importers who price LPG in U.S. dollars.
Market Forecast: LPG May Remain Elevated
Market analysts suggest that if global oil prices remain soft but Nigeria’s LPG importation capacity doesn’t scale, the local price will likely continue to rise. Without immediate interventions such as enhanced domestic production, tax incentives, or improved port logistics, LPG affordability may worsen.
Conclusion
The divergence between falling crude oil prices and rising LPG costs underscores Nigeria’s fragile downstream energy system. While petrol and diesel users may benefit from current trends, household consumers reliant on LPG for cooking may bear the brunt unless the government or key players step in to stabilize supply and pricing.