The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has blamed wholesalers, retailers, and supply chain inefficiencies for the sharp increase in cooking gas prices across the country, saying consumers are paying far above the regulator’s recommended price benchmarks.
The regulator made the disclosure during an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources to address rising Liquefied Petroleum Gas (LPG) prices and supply challenges in Nigeria.
Presenting the authority’s position, Rabiu Umar, NMDPRA Chief Executive Officer, stated that many marketers are selling LPG at non-cost-reflective prices, with consumers paying as much as N2,100 per kilogram in some parts of the country, despite significantly lower indicative prices issued by the regulator.
According to the authority, cooking gas currently sells between N1,600 and N2,100 per kilogram in the South-West, compared with the recommended price range of N1,018 to N1,177 per kilogram. In the North-Central region, prices range from N1,550 to N1,950 per kilogram against an indicative benchmark of N1,066 to N1,224 per kilogram.
Similarly, consumers in the South-South are paying between N1,400 and N2,000 per kilogram, despite the regulator’s suggested price range of N1,021 to N1,179 per kilogram.
Umar attributed the significant price disparities to excessive markups by wholesalers and retailers, as well as infrastructure and distribution challenges affecting the movement of products across the country.
The NMDPRA also raised concerns over domestic supply shortages, revealing that a substantial portion of locally produced LPG is being exported rather than supplied to the Nigerian market.
According to the regulator, Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026 but exported the entire volume, accounting for 22.93 per cent of Nigeria’s total LPG production during the period.
The authority noted that discussions would be required with the Ministry of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to address the situation and secure additional volumes for domestic consumption.
Data presented by the regulator 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. Dangote Petroleum Refinery followed with 105,127 metric tonnes, representing 16.26 per cent of production.
The NMDPRA disclosed that Nigeria recorded a year-to-date LPG supply deficit of 91,966 metric tonnes between January 1 and June 18, 2026.
According to the authority, total LPG supply stood at 565,106 metric tonnes during the period, falling short of the benchmark requirement of 657,072 metric tonnes.
The shortfall reduced market coverage efficiency to 86 per cent, compared to 88.4 per cent recorded in 2025.
The regulator also blamed poor import performance by oil marketing companies for worsening supply conditions. It revealed that marketers allocated import quotas totaling 390,000 metric tonnes for the second quarter achieved only 4.2 per cent of the approved volume.
The authority warned that Nigeria could face an additional supply gap of about 165,000 metric tonnes in the third quarter of 2026 if current challenges persist.
