NMDPRA Blames Marketers for Soaring Cooking Gas Prices as Supply Gap Widens

Nigeria’s cooking gas regulator has accused wholesalers and retailers of inflating prices beyond approved benchmarks, contributing to the sharp rise in liquefied petroleum gas (LPG) prices across the country.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this during an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources to address rising cooking gas prices.

A presentation delivered by the authority’s Chief Executive Officer, Rabiu Umar, showed that consumers in several regions are paying significantly more than the regulator’s indicative pricing ranges. In the South-West, LPG sells for between N1,600 and N2,100 per kilogram against an indicative range of N1,018 to N1,177 per kilogram. Similar disparities were recorded in the North-Central and South-South regions.

According to the regulator, non-cost-reflective pricing by wholesalers and retailers, alongside distribution and infrastructure constraints, remains a major factor driving higher consumer prices.

Domestic supply challenges deepen market pressure

The authority also raised concerns about domestic supply shortages, noting that a sizeable portion of locally produced LPG is being exported instead of being supplied to the domestic market.

According to NMDPRA data, Chevron Nigeria 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 total LPG production during the period.

Nigeria LNG remained the country’s largest producer with 187,559 metric tonnes, while Dangote Petroleum Refinery contributed 105,127 metric tonnes.

The regulator said engagements with the Ministry of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) would be required to secure additional volumes for local consumption.

Supply deficit, Imports and market reforms

The NMDPRA reported a year-to-date LPG supply deficit of 91,966 metric tonnes between January and 18 June 2026. Total supply stood at 565,106 metric tonnes against a benchmark requirement of 657,072 metric tonnes, reducing market coverage efficiency to 86 per cent.

The authority attributed part of the shortfall to poor import performance, revealing that oil marketing companies achieved only 4.2 per cent of their approved second-quarter import allocation of 390,000 metric tonnes.

It also identified the growing role of intermediaries in the LPG market as a contributor to higher prices, saying traders have increasingly become the dominant off-takers from producers, forcing terminal operators to source products through middlemen.

To address the challenges, the regulator said it has commenced audits and enforcement actions aimed at increasing direct access to producers for terminal operators. It is also pursuing measures to improve foreign exchange access for imports, deploy technology-driven product tracking systems and expand gas infrastructure through the Midstream and Downstream Gas Infrastructure Fund.

According to the authority, LPG stock sufficiency has improved from 11 days to 22 days following recent interventions. Nigeria’s LPG stock stood at 85.87 million kilograms as of 21 June, while average daily supply rose to 5,040 metric tonnes in June from 4,262 metric tonnes in May.

The regulator added that the Anoh Gas Processing Plant is expected to begin contributing additional volumes to the domestic market from July 2026.