Key points
- The Federal Government ordered the oil sector regulator to work closely with marketers and producers to stabilize the cooking gas market.
- Consumers expressed high dissatisfaction as roadside retail prices for cooking gas hit ₦2,000 per kilogram in local communities.
- Industry marketers pledged to scale up import volumes to back local production and ease current energy shortages.
- Authorities confirmed that a new gas processing facility is scheduled to begin production deliveries this July to boost nationwide stock.
- Policy leaders linked recent price hikes to foreign exchange swings and transport costs rather than a failure in government policy.
Main Story
The Federal Government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to increase its engagement with producers and marketers to bring stability to the country’s cooking gas market.
The Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, issued the directive on Monday in response to growing public concern over the continuous rise in the price of Liquefied Petroleum Gas (LPG). According to reports, the retail price of cooking gas has climbed to ₦2,000 per kilogram at local roadside outlets, while major marketing companies are selling the product at ₦1,600 per kilogram, triggering widespread complaints from consumers over the resulting financial hardship.
In an official statement released by his spokesperson, Louis Ibah, the minister explained that recent price increases are being driven by practical market pressures. These factors include foreign exchange volatility, rising transport and logistics costs, infrastructure bottlenecks, and shifting international energy prices.
Ekpo emphasized that these economic challenges should not be viewed as a sign of policy failure, reassuring the public that the government remains fully dedicated to providing reliable and affordable gas for homes, industries, and power generation. To address the immediate supply gaps, local marketers have committed to increasing import volumes to support domestic production.
The government also revealed that national supply will get a major boost in July when deliveries begin from a new Seplat Energy gas facility. Additionally, the ministry confirmed that regulatory measures are successfully keeping locally produced gas within the country, denying rumors that companies are exporting volumes meant for domestic use.
A standing policy remains in place requiring all LPG produced in Nigeria to be prioritized for local families and businesses. Officials maintain that this strategy has already helped strengthen the domestic market, cut down on import reliance, and set a positive path forward for long-term national energy security.
The Issues
- Managing high transport costs and infrastructure bottlenecks that keep driving up retail prices for local consumers.
- Balancing the rely-on-imports strategy with local production to keep prices stable when the foreign exchange market shifts.
- Ensuring the new production facility starts up smoothly in July without technical delays to relieve market shortages.
What’s Being Said
- Addressing public concern over the current energy price spikes, the Minister’s spokesperson, Louis Ibah, noted that the recent price adjustments were driven largely by prevailing market realities such as foreign exchange volatility, rising logistics costs, infrastructure constraints, and fluctuations in international prices.
- Reassuring the public about the long-term plan for local consumers, the ministry stated that the outlook for supply remains positive, adding that the government will continue to pursue measures that enhance availability, affordability, and long‑term energy security.
What’s Next
- Regulatory inspectors will step up monitoring at local depots to ensure all domestic gas volumes are saved for the local market.
- Logistics managers at Seplat Energy will finalize preparations to hit their scheduled July launch date for the new gas facility.
- Marketing associations will arrange foreign exchange lines to execute their promised increase in cooking gas import volumes.
Bottom Line The Federal Government has ordered regulators and energy firms to collaborate to stabilize cooking gas prices, pointing to a new Seplat production facility launching this July and increased imports to combat the ₦2,000 per kg retail rates caused by foreign exchange shifts.
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