Cooking Gas Price Rises to ₦1,600/kg as FG Sets 2028 Deadline to End Regulated Gas Pricing
- Nigeria targets a willing-buyer, willing-seller domestic gas market by September 2028, subject to supply, infrastructure and competition conditions
- Cooking gas prices have climbed again, with a 12.5kg cylinder costing about ₦20,000 in parts of Lagos
- Government plans new gas distribution licences and major infrastructure projects to expand supply, demand and domestic gas consumption
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigerian households facing renewed increases in cooking gas prices could see the domestic gas market undergo an even bigger transformation over the next two years as the Federal Government moves towards a fully commercial pricing system.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has fixed September 24, 2028, as the target for transitioning Nigeria’s domestic gas market to a willing-buyer, willing-seller framework.
Source: Twitter
Under the proposed arrangement, commercial contracts and negotiations between buyers and sellers will increasingly determine gas prices rather than regulated pricing.
The transition is provided for under the Petroleum Industry Act and will depend on the market meeting specified conditions.
Cooking gas price rises again
The announcement comes at a sensitive time for households as Liquefied Petroleum Gas (LPG), commonly called cooking gas, has recorded renewed price increases after an earlier period of relief.
Recent market checks showed retail LPG selling for about ₦1,600 per kilogramme in parts of Lagos, while consumers in Osun paid around ₦1,500/kg and those in Oyo about ₦1,300/kg, a report by The Guardian says.
At ₦1,600 per kilogramme, filling a 12.5kg cylinder costs about ₦20,000, putting additional pressure on household budgets already affected by higher petrol, transportation and food costs.
The increase represents a reversal of some of the relief recorded earlier in the third quarter. LPG prices had fallen sharply from June highs as improved depot supply and higher domestic production eased shortages, ThisDay reports.
The renewed increase therefore highlights one of the challenges facing regulators as Nigeria prepares for a more market-driven gas pricing system.
NMDPRA sets conditions for new pricing system
NMDPRA Chief Executive Rabiu Umar said the transition would not simply be triggered by the September 2028 deadline. Instead, regulators will assess whether different segments of the market are sufficiently mature.
Key indicators include adequate and diverse gas supply, sufficient numbers of buyers and sellers, access to transportation infrastructure, reliable payments, strong commercial contracts and credible price signals.
Umar acknowledged that domestic gas supply remains tight despite Nigeria’s substantial gas resources.
He said infrastructure development must therefore be accompanied by sufficient gas supply to ensure projects such as the Ajaokuta-Kaduna-Kano gas pipeline are commercially viable.
FG targets bigger domestic gas market
The government is also seeking to increase domestic use of LPG, compressed natural gas and liquefied natural gas while expanding gas-to-power projects.
Qualified companies are expected to receive new gas distribution licences in the fourth quarter of 2026 as part of efforts to deepen competition and improve distribution.
Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the programme is targeting a gas supply of 12.6 billion cubic feet per day by 2030.
Source: UGC
Sixteen major infrastructure projects have been identified, alongside more than 60 projects capable of generating about 15 billion cubic feet per day of demand, according to a report by The Sun Nigeria.
For households, however, affordability will remain a crucial test.
A competitive market could attract investment, increase supply and improve efficiency over time, but the recent rise in LPG prices shows why adequate supply, infrastructure and competition will be important before regulated pricing is fully withdrawn.
Dealers quote new prices for cooking gas
Legit.ng previously reported that the cost of cooking gas has climbed to about N1,500 per kilogram from N1,200, representing a 25% increase and adding fresh pressure on Nigerian households already grappling with higher energy costs.
The increase comes as diesel prices also moved higher across major depots, with Automotive Gas Oil (AGO) selling above N2,000 per litre at several locations and reaching as high as N2,300 per litre at some retail outlets.
Source: Legit.ng
