Cooking Gas In Nigeria More Expensive Than Saudi Arabia, Russia, India, Others Despite Lower Minimum Wage, Data Shows
New data reveals a stark economic paradox: Nigerian households are paying more for cooking gas than citizens in oil-rich nations like Saudi Arabia and Russia, as well as emerging economies like India and Brazil—despite Nigeria having one of the lowest minimum wages globally. While a Nigerian worker earning the ₦70,000 minimum wage spends nearly 20% of monthly income on a single 12.5kg cylinder refill, counterparts in Saudi Arabia spend less than 2% of average earnings on the same commodity.
This disparity has ignited fresh outrage across social media, with Nigerians questioning why a country blessed with vast gas reserves continues to subject its citizens to some of the world's highest energy costs relative to income. As prices hover between ₦1,000 and ₦1,400 per kilogram as of March 2026, many families are being pushed back to charcoal and firewood—a dangerous regression in clean energy adoption.
📊 The Numbers: Nigeria vs. The World
According to industry data and global energy price trackers, the cost of cooking gas in Nigeria remains disproportionately high when compared to countries with similar or even higher production costs. The table below illustrates the stark contrast as of March 2026:
| Country | Price per kg (USD) | Price per kg (₦ equivalent) | Monthly Minimum Wage (USD) | % of Wage for 12.5kg |
|---|---|---|---|---|
| Saudi Arabia | $0.55 | ≈ ₦825 | $1,333 | 0.5% |
| Russia | $0.65 | ≈ ₦975 | $242 | 3.4% |
| India | $1.10 | ≈ ₦1,650 | $95 | 21.7% |
| Brazil | $1.25 | ≈ ₦1,875 | $265 | 8.8% |
| Nigeria | $0.85–$1.00 | ₦1,200–₦1,500 | $46 (₦70,000) | ~19–24% |
*Exchange rate: ₦1,500/$1; Nigerian prices based on March 2026 retail averages
Industry expert Professor Joe Ezigbo, a veteran oil and gas operator, recently explained the root cause: "The real problem is not only the price of gas. The real problem is the income level of Nigerians." He noted that even when supply improves, affordability remains out of reach because household incomes have declined in real terms over the past three years.
🔥 Current Market Reality: ₦1,400/kg and Rising
As of March 18, 2026, the Dangote Refinery increased its gantry price for Liquefied Petroleum Gas (LPG) to ₦800 per kilogram, up from ₦760/kg. However, depot prices from other suppliers remain significantly higher: Ardova sells at ₦900/kg, Navgas at ₦890/kg, and PPMC at ₦895/kg. These ex-depot rates translate to retail prices between ₦1,200 and ₦1,500 per kilogram across major cities, with some areas exceeding ₦1,600.
The Nigeria Liquefied and Compressed Gases Association (NLCGA) confirmed that current price adjustments reflect global disruptions following attacks on Qatar's Ras Laffan LNG facility and the closure of the Strait of Hormuz. NLCGA President Felix Ekundayo noted that while prices have risen from ₦1,000 to about ₦1,400/kg, the situation is "under control" compared to past crises when prices spiked nearly 40%.
For a typical Nigerian family consuming a 12.5kg cylinder monthly, the cost now ranges from ₦15,000 to ₦18,750—consuming nearly a quarter of the national minimum wage of ₦70,000. This contrasts sharply with 2023, when the same cylinder cost about ₦10,323.
💬 "It Shall Never Be Well" — Nigerians Vent on Social Media
The affordability crisis has triggered a firestorm of reactions across X (formerly Twitter), Facebook, and other platforms. Citizens are expressing frustration, anger, and a sense of betrayal—especially given Nigeria's status as a major gas producer. Below are some of the most shared reactions:
Many Nigerians also compared the situation to other nations, pointing out that despite lower wages, citizens of other oil-producing countries enjoy subsidized or heavily regulated gas prices. A recurring sentiment is that Nigeria's vast gas reserves—estimated at over 200 trillion cubic feet—should translate to affordable energy for citizens, not just export revenue.
🛡️ The Other Side: "We Are Better Positioned Than Before"
Amid the outrage, some industry stakeholders and government supporters have offered counter-arguments, emphasizing structural improvements and the impact of global factors beyond Nigeria's control.
📈 What Defenders Are Saying
Felix Ekundayo, President of NLCGA: "Nigeria is no longer at the full mercy of global supply disruptions. Domestic production now accounts for about 87% of LPG consumed locally—up from less than 50% a few years ago. The Dangote Refinery alone supplies 56% of Nigeria's total LPG production. We've built resilience, and the current price adjustment is modest compared to the 40% spike we saw during previous Middle East conflicts.
Professor Joe Ezigbo, Oil & Gas Veteran: "Improvements in supply infrastructure alone may not fully address the affordability challenges. The real crisis is declining household incomes. When people earn better, they can afford better energy. This is an economic problem as much as an energy problem.
Industry Analysts: Some argue that the current price level—around ₦1,200–₦1,400/kg—is actually a significant improvement from September 2025, when prices spiked to ₦2,000–₦3,500/kg due to a PENGASSAN strike and supply disruptions. They point to the NMDPRA's January 2026 data showing LPG supply surged to 6,300 MT/day, up 21% from December, which helped stabilize prices.
Supporters of the current administration also note that the removal of the fuel subsidy—while painful—has freed up resources for infrastructure, and they argue that cooking gas prices would have risen even more without domestic refining capacity. However, critics counter that ordinary Nigerians are yet to feel the promised dividends of these reforms.
📉 "Let The Poor Breathe" — The Economic Reality
In a February 2026 editorial, The Sun Nigeria painted a grim picture of the cumulative effect of price hikes on vulnerable households. The newspaper noted that a 12.5kg cylinder of cooking gas that cost ₦10,323 in 2023 now sells for roughly ₦13,438—a 30% increase. Meanwhile, beef has jumped from ₦2,500/kg to ₦7,900/kg, and a 50kg bag of rice now sells for ₦68,000, up from ₦42,000 in 2023.
The editorial argued: "Supporters of current economic reforms often point to data showing occasional price corrections, such as rice falling from much higher peaks in 2025. But relief that comes after months of unbearable pressure feels hollow to those who sold assets, borrowed money, or went hungry during the surge. Policy success should not be measured only by charts but by whether people can still live with dignity.
Data from LivingCost.net confirms that the average monthly salary after tax in Nigeria is now about ₦301,393, but with inflation at 32.15% and interest rates at 27.25%, disposable income has been severely eroded. A household spending ₦15,000 monthly on cooking gas is allocating about 5% of the average salary to just one energy need—excluding electricity, transport, and other essentials.
🌍 Global Factors: The Middle East Crisis Impact
It's impossible to discuss current gas prices without acknowledging the geopolitical shocks. The March 2026 missile attack on Qatar's Ras Laffan LNG facility—one of the world's largest—has removed nearly 20% of global LNG supply from the market. Simultaneously, Iran's closure of the Strait of Hormuz has disrupted shipments from the Gulf region.
According to the NLCGA, Nigeria's import dependence has dropped to about 13%, meaning the country is less vulnerable than in previous years. However, global price signals still influence domestic rates because local producers can export for higher prices when international markets spike. This "export parity" pricing model means Nigerians effectively compete with global buyers for their own gas.
🔧 Proposed Solutions: From Palliatives to Structural Reform
As the debate rages, several proposals have emerged from experts and citizens alike:
- Income-focused policies: Professor Ezigbo and others argue that raising minimum wage and creating jobs is more impactful than price controls.
- Domestic pricing framework: Some advocate for a domestic LPG pricing mechanism that decouples local prices from international benchmarks, similar to how petrol was subsidized before 2023.
- Expand social safety nets: Targeted cash transfers and food support to cushion the poorest households during price volatility.
- Invest in storage and distribution: Reduce post-production losses and logistics costs that inflate final prices.
- Encourage inland production: Boost output from sources like the Ajaokuta-Kaduna-Kano (AKK) gas pipeline corridor to reduce reliance on coastal depots.
🎯 Bottom Line: A Crisis of Affordability, Not Just Supply
The data is unambiguous: Nigerian households pay more for cooking gas relative to their income than citizens of virtually any other major gas-producing nation. While global events have pushed prices upward, the deeper crisis lies in the collapse of purchasing power over the past three years.
For the mother in Lagos who now buys charcoal because a 12.5kg cylinder costs more than her rent contribution, or the civil servant in Abuja who budgets gas as a luxury, the statistics are not abstract—they are survival math. Until incomes rise or a domestic pricing framework insulates Nigerians from export parity, the phrase "cooking gas" will remain a bitter irony in a country blessed with gas reserves.
hotgist9ja.com will continue to track this story as prices evolve and policies shift.