The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said wholesalers and retailers of liquefied petroleum gas (LPG) are selling cooking gas at inflated, non-cost reflective prices, pushing rates as high as ₦2,100 per kilogram despite lower benchmark prices set by the regulator.
The disclosure was made in a presentation delivered by Rabiu Umar, chief executive officer of the authority, during an emergency stakeholders’ meeting organised by the Ministry of Petroleum Resources over rising LPG prices.
According to the regulator, consumers nationwide are paying significantly above the official pricing benchmarks due to excessive profit margins by marketers and persistent distribution challenges.
NMDPRA said cooking gas currently sells between ₦1,600/kg and ₦2,100/kg in the south-west, despite the indicative price range of ₦1,018/kg to ₦1,177/kg.
In the north-central region, LPG sells for between ₦1,550/kg and ₦1,950/kg, compared to the regulator’s benchmark of ₦1,066/kg to ₦1,224/kg, while prices in the south-south range from ₦1,400/kg to ₦2,000/kg against an official guide of ₦1,021/kg to ₦1,179/kg.
The authority blamed the price disparity on “non-cost reflective pricing” by wholesalers and retailers, as well as infrastructure limitations affecting distribution.
NMDPRA also expressed concern over domestic supply shortages, noting that a significant portion of locally produced LPG is being exported instead of being supplied to the Nigerian market.
According to the report, Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026 but exported the entire volume, accounting for 22.93 percent of total production during the period.
The regulator said further engagement with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Petroleum Resources would be necessary to address the issue and secure more supply for domestic use.
The report showed that Nigeria LNG remained the largest producer with 187,559 metric tonnes, representing 29.01 percent of total output, followed by Dangote Petroleum Refinery with 105,127 metric tonnes, accounting for 16.26 percent.
NMDPRA further revealed that Nigeria recorded an LPG supply shortfall of 91,966 metric tonnes between January 1 and June 18, 2026.
According to the report, total supply during the period stood at 565,106 metric tonnes, compared with the required benchmark of 657,072 metric tonnes.
The deficit reduced market coverage efficiency to 86 percent, down from 88.4 percent in 2025.
The authority attributed part of the shortfall to poor import performance by oil marketing companies, noting that marketers who received import quotas totalling 390,000 metric tonnes for the second quarter achieved only 4.2 percent of the approved volume.
NMDPRA warned that Nigeria could face a supply gap of 165,000 metric tonnes in the third quarter if current supply challenges continue.
The regulator also identified middlemen as a major driver of rising prices, saying traders have become the dominant off-takers of LPG from producers, forcing terminal operators to purchase products through intermediaries.
It said audits and enforcement measures have begun to increase the number of terminal operators buying directly from producers.
According to the authority, recent interventions have 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 regulator added that efforts are ongoing 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.
NMDPRA also said the Anoh Gas Processing Plant is expected to add more supply to the domestic market from July 2026.