Nigeria’s Cooking Gas Prices Jump to ₦950 per KG as Iran War Disrupts Global Supply

Tensions in the Middle East escalated sharply after Iran attacked five ships in the Strait of Hormuz, effectively closing one of the world's most critical energy corridors for a fourth consecutive day. The Strait, a narrow waterway between Iran and Oman, accounts for approximately 20% of global oil and LNG supply. When it chokes, the world feels it, and Nigeria is no exception.

Crude tanker transits through the Strait collapsed from an average of 24 vessels per day to just four on March 1, the day after hostilities broke out, according to vessel-tracking data from Vortexa. The ripple effect was immediate. Brent crude climbed to $84 per barrel from $72.87, while Nigeria's own Bonny Light benchmark surged to $80 per barrel from $70, its highest point since July 2025. European gas prices soared as much as 40% in a single session.

At Lagos depots, the numbers are already on the board as Channels TV reports that Nipco Plc, one of Nigeria's largest LPG distributors, is now selling at ₦950 per kilogram. Navgas Limited is dispensing at ₦900, while Techno Oil has priced its stock at ₦885. The previous market average was around ₦800 per kilogram, meaning Nigerians are paying up to ₦150 more per kilogram in the space of days.

Nigeria sits in a structurally vulnerable position when it comes to cooking gas. Despite holding some of the largest natural gas reserves on the continent, the country still relies on imports to bridge domestic supply gaps. 

According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, 87% of the 52,900 metric tonnes of cooking gas supplied to the domestic market in 2025 were locally sourced, an improvement on previous years. But that remaining 13% still leaves Nigeria exposed to international price swings, and crucially, even locally produced LPG is priced against international benchmarks.

That last point is the critical one, because when global markets move, local prices follow regardless of how much gas Nigeria is producing at home. Add foreign exchange pressure on top of that, and a crisis in the Persian Gulf becomes a crisis at the local gas depot faster than most people expect.

Iraq, OPEC's second-largest producer, warned it may be forced to cut output by more than 3 million barrels per day if tanker movement through the Gulf remains restricted. Production cuts have already begun with 700,000 barrels per day from the Rumaila field, and 460,000 from West Qurna 2. Qatar, one of the world's largest LNG exporters, has also faced production disruptions.

Regional powers, including Saudi Arabia, the UAE, and Kuwait, have so far intercepted most Iranian missiles and drones targeting energy infrastructure. But security analysts are watching carefully to see how long their interception stockpiles can hold.

For now, the conflict shows no sign of de-escalating, and until the Strait of Hormuz reopens fully, energy markets and Nigerian households should expect continued pressure on prices.

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