Nigeria's LPG Demand Plummets 23% Amid Iran Conflict

Between March and June 2026, Nigeria's cooking gas market experienced a significant decline in demand, dropping by nearly 23% to 123,000 tonnes in June, the lowest level in seven months, as reported by intelligence firm Argus. This decline was attributed to the Iran conflict, which disrupted global liquefied petroleum gas (LPG) supplies, coupled with weaker domestic output and tighter import conditions.

Domestic LPG production fell by over 20% due to reduced output from inland gas-processing plants and scheduled maintenance at the refinery's residual fluid catalytic cracker. To compensate for the shortfall, Nigerian LPG operators increased imports dramatically, bringing in 46,000 tonnes in June, compared to just 3,000 tonnes in May and none in April.

Following a US-Iran peace deal in June, international LPG prices dropped over 40%, leading to a surplus of 30,000 tonnes by July. Domestic supply rebounded, with output from the Dangote refinery rising 71% to 25,800 tonnes and gas-processing plants increasing supply by 88% to 47,000 tonnes.