Why LPG Prices Won’t Drop Anytime Soon: NMDPRA Explains

cooking gas price

Why LPG Prices Won’t Drop Anytime Soon: NMDPRA Explains

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has attributed the rising cost of cooking gas to high landing costs, even as the Federal Government convenes an emergency meeting with security agencies including the DSS, EFCC, and the Nigeria Police Force to tackle hoarding and illegal diversion of Liquefied Petroleum Gas across the country.

The Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mallam Rabiu Abdullahi Umar, has blamed high landing costs for the rising cost of Liquefied Petroleum Gas (LPG), otherwise called ‘cooking gas’ in the country. Umar stated this during a stakeholders’ meeting convened by the Federal Ministry of Petroleum Resources to address the recent increase in LPG prices and develop coordinated measures to improve supply, affordability, and market stability. “High landing costs continue to influence LPG prices, but the ongoing measures across the value chain would begin to ease market pressures in the coming weeks,” Umar said. He added that the authority is working with producers and other stakeholders to increase domestic supply, strengthen market oversight, and support interventions that will improve availability.

The Federal Ministry of Petroleum Resources convened an emergency stakeholders’ engagement involving the Department of State Services (DSS) , the Economic and Financial Crimes Commission (EFCC) , and the Nigeria Police Force to address LPG hoarding and illegal diversion to neighbouring countries. The meeting brought together key government officials, regulators, producers, marketers, terminal operators, and industry associations to examine factors contributing to rising LPG prices and agree on practical interventions to strengthen the value chain. The Minister of State for Petroleum Resources (Gas), Rt. Honourable Ekperikpe Ekpo, directed security agencies to support regulators in preventing diversion, hoarding, illegal storage, and disruption of legitimate supply movement along key LPG corridors. He warned that the government would not allow market forces to thwart its efforts in ensuring availability and affordability of LPG.

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In a presentation, Executive Director of Distribution Systems, Storage and Retailing Infrastructure (DSSRI), Mr Ogbugo Ukoha, identified several major factors affecting LPG pricing, including infrastructure gaps, domestic supply constraints, logistics challenges, market distortions, and global supply disruptions. The NMDPRA also attributed the supply challenges to continued exports of locally produced LPG, global supply disruptions linked to tensions in the Middle East, inadequate import volumes, and what it described as non-cost-reflective pricing practices. The regulator maintained that the full domestication of locally produced LPG would significantly improve availability and reduce pressure on prices.

Despite the challenges, the NMDPRA reported improvements following recent engagements with producers, suppliers, and terminal operators. National LPG supply sufficiency increased from 11 days to 22 days, while average daily supply rose from 4,262 metric tonnes in May 2026 to 5,040 metric tonnes in June 2026. However, the regulator projected that there could be a supply gap of 165,000 metric tonnes in the third quarter of 2026 if corrective measures were not urgently implemented. To address this, the NMDPRA announced it would issue additional import permits to bridge the projected shortfall. According to data presented at the meeting, four imported LPG cargoes were discharged in Lagos within the first 19 days of June 2026, totalling about 16,000 metric tonnes. The imports were made by marketers including Algasco LPG and Rainoil Limited. An additional 44,100 metric tonnes of locally produced LPG is expected to enter the market before the end of June.

The Minister of State for Petroleum Resources (Gas), Rt. Honourable Ekperikpe Ekpo, stated that President Bola Tinubu is concerned about the rising LPG prices for Nigerians and has directed relevant agencies to take proactive steps to address the situation. Ekpo emphasised that increased supply should be supported by efficient logistics, improved infrastructure, and transparent pricing mechanisms to ensure consumers benefit from interventions across the sector. The Permanent Secretary of the Ministry of Petroleum Resources, Patience Oyekunle, described LPG as a critical energy source for households and an important component of Nigeria’s energy transition agenda. She noted that rising LPG prices are putting additional pressure on household budgets and increasing the cost of essential goods, stressing the need for collective action to improve access to affordable cooking gas.

Stakeholders across the LPG value chain pledged their support for government efforts while highlighting challenges affecting storage, transportation, distribution, and market efficiency. The measures agreed on include intensified market monitoring, improved enforcement against malpractice, expansion of storage and distribution infrastructure, increased domestic production, enhanced product tracking systems, improved access to market data, and stronger collaboration among industry players. The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) expressed concern over what it described as profiteering by middlemen in the LPG value chain, insisting that market distortions rather than supply shortages were increasingly contributing to high consumer prices. Former Chairman of the association, Oladapo Olatunbosun, urged regulators to ensure that the benefits of improved domestic supply reached end-users and were not captured by intermediaries through excessive mark-ups and speculative trading.