The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says cooking gas prices have surged to as high as N2,100 per kilogram across parts of the country due to non-cost reflective pricing by marketers.
The disclosure was made during a presentation by the agency’s chief executive, Rabiu Umar, at an emergency stakeholders’ meeting convened by the petroleum ministry.
Marketers blamed for price distortion
The regulator said wholesalers and retailers are selling liquefied petroleum gas (LPG) well above its indicative price benchmarks, with consumers paying significantly more than official guidance.
Prices currently range between N1,400/kg and N2,100/kg depending on region, despite indicative benchmarks of roughly N1,018/kg to N1,224/kg set by the authority.
The agency attributed the gap to pricing practices within the distribution chain, alongside infrastructure constraints affecting supply movement across the country.
Regional price differences persist
In the south-west, LPG sells between N1,600/kg and N2,100/kg. In the north-central, prices range from N1,550/kg to N1,950/kg, while the south-south records between N1,400/kg and N2,000/kg.
The regulator said these variations reflect inefficiencies in distribution and market intermediaries inflating costs.
Export of local supply raises concerns
The report also highlighted supply pressures linked to exports of domestically produced LPG.
Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026, but exported the entire volume, according to the presentation.
Meanwhile, Nigeria LNG remained the largest domestic producer, while Dangote Petroleum Refinery contributed over 105,000 metric tonnes within the same period.
National supply deficit recorded
Nigeria recorded a year-to-date LPG shortfall of 91,966 metric tonnes between January and mid-June 2026, with total supply falling below national demand requirements.
The regulator said supply efficiency has dropped to 86 per cent, with import performance by marketers remaining weak despite approved quotas.
It warned that if current trends continue, the country could face a further supply gap of 165,000 metric tonnes in the third quarter.
Middlemen and infrastructure challenges
The authority also pointed to the growing role of intermediaries in the LPG value chain, saying traders are increasingly buying directly from producers instead of terminal operators with storage capacity.
It said enforcement actions and audits have begun to address the issue and improve direct access for legitimate operators.
Stock levels and outlook
Despite the challenges, the regulator said LPG stock sufficiency has improved from 11 days to 22 days, with total stock estimated at 85.87 million kilograms.
It added that ongoing interventions, including improved import access, infrastructure expansion and digital tracking systems, are expected to stabilise supply.
The Anoh Gas Processing Plant is also expected to boost domestic LPG availability from July 2026.
