FG Finally Finds Solution to High Cooking Gas Prices as Retail Rates Cross N2,000/KG
- Federal Government introduces measures to tackle soaring LPG prices in Nigeria
- NMDPRA reveals serious price disparities among wholesalers and retailers amid supply shortages
- Chevron's LPG export raises concerns as Nigeria faces a significant supply deficit and market inefficiencies
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government has unveiled fresh measures aimed at reducing the soaring cost of cooking gas across Nigeria after retail prices climbed above N2,000 per kilogram in several cities, worsening the burden on millions of households.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said recent investigations showed that many liquefied petroleum gas (LPG) wholesalers and retailers are charging prices far above cost-reflective levels, despite significantly lower indicative prices issued by the regulator.
Source: UGC
The revelation was made during an emergency stakeholders' meeting convened by the Ministry of Petroleum Resources to address the persistent rise in LPG prices nationwide.
Marketers blamed for wide price disparity
According to the NMDPRA, cooking gas currently sells for between N1,600 and N2,100 per kilogram in the South-West, even though the regulator's indicative price ranges from N1,018 to N1,177 per kilogram.
In the North-Central region, consumers pay between N1,550 and N1,950 per kilogram against a benchmark of N1,066 to N1,224. Similarly, prices in the South-South hover between N1,400 and N2,000 per kilogram despite an official guide of N1,021 to N1,179.
The regulator attributed the disparity to what it described as "non-cost reflective pricing" by wholesalers and retailers, alongside distribution bottlenecks and inadequate infrastructure.
Chevron exported all LPG produced in five months
The NMDPRA also raised concerns over domestic supply shortages, revealing that a significant share of locally produced LPG is being exported instead of being sold within Nigeria.
According to the authority, Chevron Nigeria produced 148,222 metric tonnes of LPG between January and May 2026, representing 22.93 per cent of total domestic production, but exported the entire volume.
The regulator said discussions would be held with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Petroleum Resources to ensure more locally produced LPG is retained for domestic consumption.
Meanwhile, Nigeria LNG remained the country's largest producer during the period, accounting for 187,559 metric tonnes or 29.01 per cent of output. Dangote Petroleum Refinery followed with 105,127 metric tonnes, representing 16.26 per cent.
Nigeria faces a growing LPG supply gap
The report further revealed that Nigeria recorded an LPG supply deficit of 91,966 metric tonnes between January and June 18, 2026.
Total supply stood at 565,106 metric tonnes, falling short of the benchmark requirement of 657,072 metric tonnes. As a result, market coverage efficiency declined to 86 per cent, down from 88.4 per cent recorded in 2025.
According to a report by TheCable, the NMDPRA said part of the shortfall was blamed on poor import performance by oil marketing companies, noting that marketers fulfilled only 4.2 per cent of the 390,000 metric tonnes allocated for importation in the second quarter.
The authority warned that the supply gap could widen to 165,000 metric tonnes in the third quarter if urgent interventions are not implemented.
FG targets middlemen, expands supply
As part of efforts to lower prices, the regulator said it has begun audits and enforcement actions aimed at allowing more terminal operators to buy LPG directly from producers, cutting out middlemen who currently dominate the market.
The agency disclosed that recent interventions have already improved LPG stock sufficiency from 11 days to 22 days. As of June 21, Nigeria's LPG stock stood at 85.87 million kilograms, while average daily supply rose to 5,040 metric tonnes in June from 4,262 metric tonnes in May.
The NMDPRA added that it is working to improve foreign exchange access for imports, deploy technology-driven tracking systems, and expand gas infrastructure through the Midstream and Downstream Gas Infrastructure Fund (MDGIF).
Source: Getty Images
In addition, the Anoh Gas Processing Plant is expected to inject more LPG into the domestic market from July 2026, offering fresh hope that cooking gas prices may finally begin to ease after months of relentless increases.
FG moves to crash cooking gas prices
Legit.ng earlier reported that the federal government has unveiled fresh measures aimed at easing the rising cost of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, following reports that prices have surged to as high as N2,500 per kilogramme in parts of Nigeria.
As households grapple with the soaring cost of clean cooking fuel, the government has directed marketers to increase LPG imports in a bid to boost supply, reduce scarcity and stabilise prices across the country.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been mandated to intensify engagement with producers, importers, marketers and other stakeholders in the LPG value chain.
Source: Legit.ng
