The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has attributed the soaring price of cooking gas across the country to what it described as “non-cost reflective pricing” by wholesalers and retailers.
The regulator disclosed that liquefied petroleum gas (LPG) currently sells for between ₦1,600 and ₦2,100 per kilogram in parts of the South-West, far above its indicative price range of ₦1,018 to ₦1,177 per kilogram.
Speaking at an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources, the Chief Executive Officer of the NMDPRA, Rabiu Umar, said excessive mark-ups by marketers and distribution bottlenecks were responsible for the disparity between official benchmark prices and what consumers are paying.
According to the authority, prices in the North-Central range between ₦1,550 and ₦1,950 per kilogram, while consumers in the South-South pay between ₦1,400 and ₦2,000 per kilogram, despite lower indicative prices issued by the regulator.
The NMDPRA noted that infrastructure constraints and inefficiencies in the supply chain have also contributed to the rising cost of the product, adding that engagements with the Ministry of Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) would be intensified to boost domestic supply.
The agency further revealed that Nigeria LNG (NLNG) remained the country’s largest producer of cooking gas during the review period, while the Dangote Petroleum Refinery ranked second in output.
The development comes amid growing concerns over the rising cost of cooking gas, which has forced many households to resort to alternative sources of energy for cooking.
