High Distribution Costs, Forex Keep Cooking Gas Prices High — NALPGAM

Toyosi
2 Min Read

How Infrastructure Deficit Stalls Growth in Real Estate and broader household economies remains a critical point of concern as retail cooking gas prices fail to return to affordable baselines despite recent federal interventions to stabilize national supply. Following an emergency stakeholders’ meeting convened in Abuja by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the Federal Government successfully boosted national product availability, pushing national supply sufficiency from 11 days to 22 days. However, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Edu Inyang, confirmed on Friday, July 10, 2026, that retail consumers are still paying elevated rates ranging between N1,300 and N1,650 per kilogram, keeping clean energy access out of reach for millions of households.

Energy sector analysts reveal that while the immediate supply crunch has receded and depot hoarding has subsided, the domestic market remains severely constrained by deeper structural flaws. Longstanding logistic bottlenecks, insufficient localized storage networks, and high inland transportation costs function exactly like the infrastructure gaps that increase project timelines and financing costs across real estate layouts, preventing cost reductions from reaching end-users at neighborhood filling plants. Inyang pointed out that because domestic production is still insufficient to satisfy national demand fully, the pricing matrix remains highly exposed to international market fluctuations and persistent foreign exchange volatility.

Moving forward, NALPGAM emphasizes that temporary market interventions must give way to long-term structural overhauls to achieve lasting price relief and prevent households from reverting to dirty fuels like firewood. The association noted that while the Abuja emergency session successfully restored supply chain confidence and checked speculative stocking, true affordability will remain elusive until underlying distribution challenges are resolved. Industry experts urge the government to expand domestic processing infrastructure, streamline regulatory clearance frameworks, and fund decentralized distribution networks to lower landing overheads and build a stable energy infrastructure ecosystem nationwide.

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