Precious Anga
Lagos — The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has blamed the sharp rise in cooking gas prices across the country on what it described as non-cost-reflective pricing by wholesalers and retailers, despite lower benchmark prices issued by the regulator.
The agency disclosed this during an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources to address escalating Liquefied Petroleum Gas (LPG) prices and growing supply concerns. According to the NMDPRA, cooking gas currently sells for between ₦1,400 and ₦2,100 per kilogramme in several parts of the country, far above its indicative pricing range of about ₦1,018 to ₦1,224 per kilogramme.
Data presented by the authority showed that consumers in the South-West are paying between ₦1,600/kg and ₦2,100/kg, while prices in the North-Central range from ₦1,550/kg to ₦1,950/kg. In the South-South, LPG prices vary between ₦1,400/kg and ₦2,000/kg. The regulator attributed the disparity to excessive mark-ups by market intermediaries and distribution challenges within the supply chain.
The NMDPRA also raised concerns over worsening domestic supply shortages, revealing that Nigeria recorded an LPG supply gap of 91,966 metric tonnes between January and June 18, 2026. During the period, total supply stood at 565,106 metric tonnes against an estimated demand of 657,072 metric tonnes, reducing market coverage efficiency to 86 per cent from 88.4 per cent recorded in 2025.
Further compounding supply challenges, the authority disclosed that Chevron Nigeria exported all 148,222 metric tonnes of LPG produced between January and May 2026. The volume represented 22.93 per cent of total domestic production during the period. The regulator said discussions would be held with the Ministry of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission to improve local supply availability.
Nigeria LNG remained the country’s largest LPG producer during the review period, accounting for 187,559 metric tonnes or 29.01 per cent of total output. Dangote Petroleum Refinery followed with 105,127 metric tonnes, representing 16.26 per cent of production.
The regulator also identified poor import performance as a key contributor to the supply shortfall. Oil marketing companies allocated import quotas of 390,000 metric tonnes for the second quarter but delivered only 4.2 per cent of the approved volume. NMDPRA warned that Nigeria could face a supply deficit of about 165,000 metric tonnes in the third quarter if current challenges persist.
According to the authority, the growing dominance of traders and middlemen in LPG transactions has further inflated prices, forcing terminal operators with storage and distribution infrastructure to purchase products through intermediaries. To address the problem, the regulator said it has commenced audits and enforcement measures aimed at increasing direct access to products from producers.
Despite the challenges, NMDPRA reported some improvements in market conditions. LPG stock sufficiency has increased from 11 days to 22 days, while national LPG inventory stood at 85.87 million kilogrammes as of June 21. Average daily supply also rose to 5,040 metric tonnes in June from 4,262 metric tonnes recorded in May. The authority added that the Anoh Gas Processing Plant is expected to boost domestic supply from July, alongside ongoing efforts to expand gas infrastructure, improve foreign exchange access for imports and deploy technology-driven product tracking systems.
