Nigeria’s LPG Demand Falls Nearly 23% Amid Iran War Supply Disruption
Nigeria’s LPG Demand Falls Nearly 23% Amid Iran War Supply Disruption
Nigeria recorded an almost 23 per cent decline in Liquefied Petroleum Gas (LPG) demand in June following supply disruptions linked to the Iran conflict, according to an analysis by energy and commodity intelligence provider Argus.
Data cited from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that LPG demand fell to about 123,000 tonnes in June, its lowest level in seven months. The decline came amid import constraints and a more than 20 per cent reduction in domestic production, putting pressure on the Nigerian market.
The supply shortfall prompted LPG operators to increase imports, which rose to about 46,000 tonnes in June from 3,000 tonnes in May. Argus said the wider supply disruption exposed vulnerabilities in emerging LPG markets across sub-Saharan Africa, although the region generally absorbed the volatility in international prices.
However, conditions in Nigeria improved in July as domestic production recovered. LPG demand rose by seven per cent to 136,500 tonnes, while the average retail price declined by 10 per cent month-on-month to ₦1,491.75 per kilogramme. Supplies from the Dangote refinery and other gas-processing plants also increased during the month.
The developments indicate that while the Iran-related supply shock affected Nigeria’s LPG market significantly earlier in the year, subsequent increases in domestic supply helped ease the pressure. The figures therefore reflect a disruption experienced during the second quarter of 2026 and should not be interpreted as a current 23 per cent decline in LPG demand.
