EUGENIA'S BLOG: Cooking Gas in Lagos Nigeria 2025

What’s happening

Cooking gas (LPG) scarcity:
- In early October 2025, many residents in Lagos and nearby areas reported difficulty finding cooking gas.
- Prices jumped from about ₦1,150/kg to ₦1,600/kg in some places.
- Long queues and limited availability of 12 kg cylinders were also reported.
Petrol / vehicle fuel (PMS) shortages:
- Fuel queues have resurfaced in Lagos — filling stations sometimes run dry or close early.
- Some stations reject POS/electronic payments when stock is low.
- Prices in many locations have shot up (especially at independent stations) when supply is low.

Why it’s happening

Several overlapping causes are contributing:

Industrial action / labor dispute:
- The Petroleum and Natural Gas Senior Staff Association (PENGASSAN) and related unions have at times halted operations such as supply of crude to refineries, including Dangote Refinery. Such stoppages disrupt the supply chain.
Levies, regulatory burdens, and logistic bottlenecks:
- Truck drivers transporting LPG or petrol have been impacted by levies (“commuting levies”) imposed by Lagos state agencies, which many see as excessive or “extortive.” This has caused reluctance or outright refusal to load at refineries.
- Also, there are issues with “e‐call up” systems (which are meant to coordinate movement of tankers) and related regulatory enforcement causing delays.
Supply chain interruptions:
- Delays in discharge operations of vessels bringing in petrol or crude input have sometimes caused shortfalls.
- Refineries (including Dangote) have had to deal with allocation issues of crude (either from domestic sources or imported), which affects ability to produce enough.
Price factor, subsidy removal, currency / foreign exchange issues:
- Removal of subsidies in past periods has made costs of import, refining, and distribution more exposed to currency fluctuations. This can lead to higher costs which may reduce supply temporarily.
- Foreign exchange constraints can make it more expensive or difficult for importers to bring in required products or inputs.

Household cost increases: Cooking gas, which many households use, has become more expensive and harder to find. This impacts especially lower-income households.
Transport cost increases: Long queues + fuel station shutdowns + higher petrol prices have led to higher fares for commuters and transportation of goods.
Economic disruptions: Businesses that rely on fuel for operations (generators, transport, etc.) suffer when fuel is unreliable. Some periods of scarcity also see gas‐powered appliances affected.

Better policy coordination: Resolving the disputes between unions, state agencies, and refinery operators could help reduce the supply interruptions.
Addressing logistics: Reducing unnecessary levies or barriers on tanker movements, ensuring efficient loading and delivery, can help.
Refinery capacity and crude supply improvements: The Dangote Refinery, once operating at full stable capacity and with reliable supply of crude, should help reduce dependency on imported refined products.
Monitoring inflation, FX stability: As long as the currency and foreign exchange system remain volatile, import costs and supply chain costs will stay unstable, raising risk of new scarcity episodes.