Iran war triggers cooking gas supply crunch, Nigeria hit

The Iran conflict triggered a significant disruption in cooking gas supplies in Nigeria, with demand falling by almost a quarter in June, according to a recent report by energy intelligence provider Argus. The Nigeria Midstream and Downstream Petroleum Regulatory Authority noted that demand reached a seven-month low of 123,000 tonnes in June, a sharp decline from the March level.

The reduction in production and import constraints led to a surge in imports, reaching a six-month high of 46,000 tonnes in June. Butane West Africa index fell by over 40 per cent in June, helping to ease the pressure on the market. Local production rebounded in July, allowing Nigeria to reduce imports and cut LPG retail prices by 10 per cent month-on-month.

Other countries in the region, such as Ghana and Kenya, faced similar challenges with tighter LPG supplies, but higher domestic production helped mitigate the impact. The region is witnessing the expansion of LPG infrastructure, with several projects planned to increase storage capacity by 2028. African nations are also introducing policies to boost LPG access as part of efforts to promote clean cooking adoption.