Consumers of liquefied petroleum gas (LPG) or cooking gas have begun to feel the pinch of the rise in global oil and gas prices following the U.S.-Israeli war on Iran, which halted energy exports from the Middle East.
Prices jumped on Tuesday as Tehran attacked ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq.
The benchmark Brent crude oil contract settled up $3.66, or up 4.7%, at $81.40 a barrel, its highest settlement since January 2025.
European gas prices soared as much as 40% before paring gains, adding to a 40% surge on Monday.
Iraq, OPEC’s second-largest producer, said it may be forced to cut production in a few days by more than 3 million barrels per day if oil tankers cannot move freely to loading points, according to two Iraqi oil officials.
As of Tuesday, Iraq has decreased production from the Rumaila oil field by 700,000 bpd and cut 460,000 bpd from the West Qurna 2 field, the officials said.
Nigeria imports a significant portion of its cooking gas despite holding massive natural gas reserves. As of late 2024, reports indicated that roughly 20% to 47% of consumed LPG was imported.
Although a net producer of gas, Nigeria has historically imported 50% or more of its cooking gas, with a large share coming from the US and Equatorial Guinea.
While some data showed up to 80% domestic production in early 2025, the country still relies on imports to bridge the gap in supply.
Because a significant portion of the gas is imported and the rest is priced using international benchmarks, local prices are often subject to foreign exchange fluctuations and international market rates.
Local depot owners have raised the price of cooking gas by an average of ₦100 per kilogram.
Nipco Plc, one of Nigeria’s largest LPG distributors, is now selling at ₦950 per kilogram. Navgas Limited is dispensing at ₦900, while Techno Oil Limited has priced its stock at ₦885 per kilogram.
The adjustments represent a sharp climb from the previous market average of around ₦800 per kilogram.
Nigeria’s Bonny Light crude, the country’s benchmark export grade, surged to $80 per barrel from $70, its highest since July 2025, according to market data tracked by Channels Television.
Brent crude, the global reference price, has since climbed to $84 per barrel from $72.87, while Murban crude rose to $81.05 from $74.24. West Texas Intermediate, the US benchmark, advanced to $72.24 per barrel from $62, marking one of its sharpest single-session rallies in recent memory.
The development was after traffic through the Strait of Hormuz was effectively closed for a fourth day after Iran attacked five ships, choking off the artery accounting for about 20% of global oil and LNG supply.
Crude tanker transits through the strait fell to four vessels on March 1, the day after hostilities broke out, versus an average of 24 per day since January, according to Vortexa vessel-tracking data. Three of the four were Iran-flagged.
