NIGERIA’S COOKING GAS SUPPLY HITS RECORD HIGH AS LOCAL PRODUCERS TAKE 82% SHARE

Nigeria’s daily supply of liquefied petroleum gas, commonly known as cooking gas, increased to 5,332 tonnes in July 2026, marking the highest level recorded in the latest 13-month period monitored by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The latest NMDPRA midstream and downstream statistics showed that the July figure represented an increase from the 5,100 tonnes supplied daily in June. The development indicates a continued improvement in the availability of cooking gas, with locally produced LPG accounting for the overwhelming majority of supplies during the month.

Nigeria LNG Limited and SEPNU emerged as the largest contributors during the period, supplying 2,031 tonnes of LPG per day through vessels. This represented approximately 38 per cent of the country’s total daily supply in July.

Other domestic processing facilities contributed another 1,513 tonnes per day through truck deliveries, while the Dangote Petroleum Refinery supplied 829 tonnes daily. Imports, meanwhile, accounted for 959 tonnes per day.

Overall, domestic sources provided 4,373 tonnes of LPG per day, representing about 82 per cent of total supply, while imported products made up the remaining 18 per cent. The figures point to a growing reliance on domestic production to meet the country’s cooking gas requirements.

The July performance also represented a notable improvement compared with several months earlier. In July 2025, LPG supply stood at about 4,500 tonnes per day before increasing to 5,000 tonnes in August. Supply subsequently dropped to 3,900 tonnes in September before recovering to 4,500 tonnes in October and reaching 5,000 tonnes in November.

The upward movement continued towards the end of 2025, with daily supply rising to 5,200 tonnes in December. In January 2026, it reached 5,100 tonnes before falling to 4,700 tonnes in February and March, 4,500 tonnes in April and 4,100 tonnes in May.

Supply then recovered to 5,100 tonnes per day in June, eventually reaching the July record of 5,332 tonnes. The latest figures therefore suggest that the domestic LPG market has been experiencing a gradual strengthening of supply despite fluctuations recorded throughout the preceding months.

The increase in supply, however, has not yet translated into cooking gas prices falling below the ₦1,000-per-kilogramme level. Although prices have dropped considerably from the peak of about ₦2,400 per kilogramme recorded during the sharp price increase in May, consumers in different parts of the country are still reportedly paying between ₦1,300 and ₦1,600 per kilogramme.

The persistence of relatively high retail prices has raised questions about the relationship between increased supply and the prices ultimately paid by consumers. While more LPG is now coming from domestic sources, transportation, distribution costs and other factors along the supply chain continue to influence the final retail price.

NLNG has also raised concerns about alleged distortions within the distribution chain. The company recently accused some marketers of purchasing LPG from it at significantly lower prices and subsequently selling the product to consumers at much higher rates.

NLNG Managing Director and Chief Executive Officer, Adeleye Falade, said the company was selling LPG to some buyers for between ₦800 and ₦900 per kilogramme during the period when retail prices reportedly reached ₦2,400 per kilogramme. He argued that the price gap pointed to problems within the downstream distribution system rather than pricing by NLNG.

Falade said the Nigerian Midstream and Downstream Petroleum Regulatory Authority had indicated that, after transportation and related costs were taken into consideration, the product should have been sold within the range of approximately ₦1,000 to ₦1,200 per kilogramme. He added that regulators were working to address what he described as distortions in the sales and distribution process.

NLNG has maintained a significant role in Nigeria’s domestic LPG market. The company says it has supplied cooking gas to Nigerian homes under its Domestic LPG scheme since 2007 and, since 2022, has committed 100 per cent of its Butane production to the domestic market. It supplies the product through selected off-takers and approved coastal LPG terminals.

The company says its domestic LPG supply has grown substantially since the launch of the scheme and currently meets a significant portion of Nigeria’s domestic market requirements. Its continued supply, alongside contributions from other domestic processing facilities, is expected to help strengthen availability and reduce dependence on imports.

With domestic producers accounting for more than four-fifths of the LPG supplied in July, attention is now shifting towards whether sustained increases in production and supply will eventually translate into more affordable prices for households. For consumers, the major benefit of the latest supply growth will ultimately depend on how effectively the product moves through the distribution chain and how much of the increased availability is reflected in retail prices.