Nigeria's Gas Price Hike Driven by Global Market Trends

Edu Inyang, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), explained that the recent hike in gas prices is primarily due to higher depot prices resulting from a reduction in local supply and a rise in international benchmarks. He noted that the lower volume from the Dangote refinery has made it increasingly difficult to access products in the market.

Inyang highlighted that the inability of off-takers to secure supply for extended periods has exacerbated the situation. He linked the trend to developments in the global energy market, stating that international price movements continue to influence domestic prices in Nigeria, which is not insulated from global energy shocks.

Additionally, he pointed out that the reliance on imports and foreign exchange dynamics contribute to rising costs. Inyang expressed optimism that increased investment in gas infrastructure could stabilize prices and improve supply, advocating for greater private sector participation in gas processing plants and upcoming projects.