KEY POINTS
- NMDPRA says wholesalers and retailers are selling cooking gas far above official indicative prices, worsening affordability for consumers.
- The regulator revealed that domestic LPG supply remains inadequate, while significant volumes of locally produced gas are being exported.
- Nigeria faces a growing supply deficit that could worsen in the coming months if imports and domestic distribution challenges are not addressed.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has blamed wholesalers, retailers, supply shortages, and distribution challenges for the continued rise in the price of cooking gas across the country.
The regulator made the disclosure during an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources to address the increasing cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
According to the authority, many marketers are charging prices that do not reflect actual costs, forcing consumers to pay significantly more than the regulator’s recommended price benchmarks.
NMDPRA Chief Executive Officer, Rabiu Umar, explained that despite the authority issuing indicative prices for LPG, consumers across various regions continue to pay much higher rates.
The regulator revealed that in the South-West, cooking gas is currently being sold for between ₦1,600 and ₦2,100 per kilogram, despite an indicative price range of ₦1,018 to ₦1,177 per kilogram.
Similarly, consumers in the North-Central region are paying between ₦1,550 and ₦1,950 per kilogram, compared to the recommended range of ₦1,066 to ₦1,224.
In the South-South region, LPG prices range from ₦1,400 to ₦2,000 per kilogram, well above the authority’s benchmark of ₦1,021 to ₦1,179.
Umar attributed the disparity to what he described as non-cost reflective pricing by wholesalers and retailers, alongside persistent infrastructure and distribution bottlenecks.
Domestic Supply Under Pressure
The authority also expressed concern over the limited supply of cooking gas available for domestic consumption.
According to NMDPRA, a substantial portion of LPG produced within Nigeria is being exported rather than supplied to local consumers.
The regulator disclosed that Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026 but exported the entire volume. The company accounted for nearly 23 per cent of Nigeria’s total LPG production during the period.
NMDPRA said discussions would be held with the Ministry of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to explore ways of increasing domestic supply and ensuring more locally produced LPG remains within the country.
The report showed that Nigeria LNG (NLNG) 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.
The Dangote Petroleum Refinery followed with 105,127 metric tonnes, representing 16.26 per cent of national production.
Despite contributions from these major producers, supply has remained below national demand. NMDPRA disclosed that Nigeria recorded a supply shortfall of 91,966 metric tonnes between January 1 and June 18, 2026.
During the period, total LPG supply stood at 565,106 metric tonnes, compared with the benchmark requirement of 657,072 metric tonnes.
As a result, market coverage efficiency dropped to 86 per cent from 88.4 per cent recorded in 2025.
The regulator warned that the country could face an even larger supply gap of about 165,000 metric tonnes in the third quarter of 2026 if current challenges persist.
The authority noted that poor import performance by oil marketing companies has further contributed to supply shortages.
According to NMDPRA, marketers that were allocated import quotas totalling 390,000 metric tonnes for the second quarter managed to achieve only 4.2 per cent of the approved volume.
This poor import performance has increased pressure on available domestic supplies and contributed to rising market prices.
