Federal Government Launches Measures to Tackle Rising LPG Prices
The Federal Government has unveiled a comprehensive strategy to mitigate the recent surge in liquefied petroleum gas (LPG) prices and enhance supply across Nigeria. This initiative was announced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) following an emergency stakeholder meeting aimed at addressing the critical issues affecting gas availability and pricing.
In a statement released on Monday, the NMDPRA noted that the Federal Ministry of Petroleum Resources organized the meeting to devise coordinated measures that would bolster supply, affordability, and market stability. Key stakeholders, including government officials, regulators, producers, marketers, terminal operators, and industry associations, gathered to analyze the factors contributing to the price increases and to propose effective solutions for strengthening the value chain.
This initiative comes against the backdrop of steep rises in cooking gas prices throughout the country. Just last month, LPG prices surged to approximately N2,000 per kg in Lagos and over N1,600 per kg in parts of Abuja, up from around N1,200 per kg the previous week. Such increases have sparked concerns among market players about escalating supply shortages and rising operational costs, further intensifying the nation’s ongoing cost-of-living crisis.
Government officials Address Concerns
During the conference, Patience Oyekunle, the Permanent Secretary of the Ministry of Petroleum Resources, emphasized the significance of LPG as a crucial energy source for households and a vital element of Nigeria’s energy transition agenda. She highlighted that the upward trend in LPG prices is placing additional strain on household budgets, driving up the costs of essential goods and services. This situation necessitates concerted efforts to improve access to affordable cooking gas.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, expressed President Bola Tinubu’s concern regarding the implications of rising LPG prices for the Nigerian populace. He indicated that the President has directed relevant agencies to take proactive measures to alleviate the situation. Ekpo emphasized that any efforts to boost supply must be accompanied by improvements in logistics and infrastructure, along with transparent pricing mechanisms, to ensure the benefits of sector-wide interventions reach the consumers.
Rabiu Umar, Chief Executive of NMDPRA, reiterated that high landing costs continue to affect LPG pricing. However, he remained optimistic that ongoing interventions throughout the value chain would begin to ease market pressures in the weeks ahead. He also noted that authorities are collaborating with producers and other stakeholders to enhance domestic supply, improve market oversight, and ensure better product availability.
Identifying Key Supply Challenges
In a presentation by Mr. Ogbugo Ukoha, Executive Director of Distribution Systems, Storage and Retail Infrastructure (DSSRI), NMDPRA identified several critical challenges impacting LPG supply, including infrastructure gaps, domestic limitations, logistical hurdles, market distortions, and disruptions in global supply chains. The assessment showed that recent engagements with suppliers and terminal operators have yielded improvements, with the national LPG supply sufficiency rate rising from 11 days to 22 days, and the daily supply increasing from 4,262 tons in May to 5,040 tons in June 2026.
Stakeholders Commit to Support Government Initiatives
Stakeholders in the LPG value chain expressed their commitment to supporting government efforts, particularly regarding obstacles related to storage, transportation, and distribution efficiency. Measures agreed upon during the meeting include reinforcing market oversight, enhancing enforcement against fraudulent practices, expanding storage and distribution infrastructure, boosting domestic production, and improving product tracking systems. Additionally, stakeholders emphasized the need for increased access to market data and enhanced cooperation within the industry.
In his concluding remarks, Mr. Ekpo urged stakeholders to act swiftly to enhance supply, eliminate inefficiencies, and safeguard consumer interests. He outlined that the success of these interventions would be gauged by the increased availability of LPG nationwide, improved distribution efficiency, and a reduction in price pressures.
