Even despite government assurances and local production capacity, the cost of cooking gas in Nigeria has remained stubbornly high. Across major cities like Lagos, Abuja, and Port Harcourt, many households are struggling to refill even a 12.5kg cylinder — with prices ranging from ₦14,000 to ₦16,000.
This has left many wondering: Why is cooking gas still so expensive in Nigeria in 2025?
One of the main reasons gas remains costly is because most gas producers in Nigeria still price in U.S. dollars. Even though the gas is produced locally, marketers often have to buy it using the exchange rate set by the international market.
With the naira fluctuating and inflation on the rise, the cost of importing or buying locally-sourced gas in dollars keeps pushing the price higher for the final consumer.
According to Mr. Chika Okafor, a gas depot manager in Lagos:
“Even though the gas is produced here, everything — from transport to supply chain — is priced in dollars. Until the government forces a naira-based pricing structure, this issue won’t go away.”
Let's not forget also that transportation plays a big part in the final price. From the refineries or depots to the filling plants, cooking gas travels long distances using trucks that rely on diesel — which is also expensive. Not to talk of insecurity on major highways has also made transport companies increase their charges due to the risk involved. When you combine this with the poor road network, delays, and multiple tax points, the price continues to rise before the gas even reaches your cylinder.
It is just soooo unfortunate, that Nigeria is rich in natural gas, but it still lacks enough domestic processing infrastructure. Most of the gas processed is exported, while local demand suffers.
The Nigeria Liquefied Natural Gas (NLNG) company had promised to increase domestic supply, but experts say the current output is still not enough to meet the growing demand from homes and businesses.
Like many other commodities in Nigeria, gas is not free from artificial scarcity. Some major suppliers hoard gas or reduce supply to drive prices up, especially when there are rumors of upcoming fuel hikes or policy changes.
This creates panic buying and further puts pressure on the market.
"No trong government regulation"
Although the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is responsible for gas pricing and distribution, many marketers operate freely without strict oversight.
“There’s no price control,” says an industry analyst. “Everyone is free to set prices, so they pass every cost down to the consumer.”
So, What’s the way forward?
Some oil and gas industry experts believe that a mix of strong regulation, increased local investment, and the full implementation of gas policy reforms could help reduce the price.
Until then, many Nigerians will continue to feel the pinch each time they visit a gas filling plants for their cooking gas.