FG: Cooking gas price rise driven by FX swings, logistics costs and other factors

• Insists current situation not as a result of failed govt policy  

•Nigeria’s daily gas output rises to 7.93bcf, domestic sales hit 2.18bcf/d

The federal government attributes the recent rise in cooking gas prices nationwide to foreign‑exchange volatility, higher logistics and transportation costs, and other supply‑chain challenges, rather than a failure of policy.

Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, issued a statement in Abuja signed by his spokesman, Louis Ibah. He acknowledged Nigerians’ concerns about the recent increase in liquefied petroleum gas (LPG) prices and blamed infrastructure constraints and international price fluctuations for the surge.

The minister assured Nigerians that the federal government remains fully committed to providing an adequate, reliable and affordable gas supply for households, industry and power generation across the country.

He said this commitment is evident in ongoing measures to stabilise the domestic LPG market, including the directive that all LPG produced in Nigeria be prioritised for local consumption.

According to him, this policy has already strengthened domestic supply, reduced dependence on imports and improved market resilience.

“The recent price adjustments are driven largely by prevailing market realities such as foreign‑exchange volatility, rising logistics costs, infrastructure constraints and fluctuations in international LPG prices. These factors should not be misinterpreted as evidence of policy failure,” Ekpo emphasised.

To address the situation, the minister directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify engagement with producers, marketers and other stakeholders to sustain supply and enhance market stability.

Marketers have also committed to increasing import volumes to complement domestic production, he pointed out.

He added that the commencement of LPG deliveries from the new Seplat gas facility in July will significantly boost national supply, confirming that no producer is exporting LPG volumes earmarked for the domestic market, as regulatory measures remain firmly in place to prioritise local needs.

“The outlook for LPG supply remains positive, and the federal government will continue to pursue measures that enhance availability, affordability and long‑term energy security for Nigerian consumers,” he said.

Meanwhile, Nigeria’s gas production rose to 7.93bcf/d in May 2026, a 0.63 per cent year‑on‑year increase from the 7.88bcf/d recorded in the corresponding period of 2025.

A breakdown of May’s production data showed that Associated Gas (AG) accounted for 3.96bcf/d, while Non‑Associated Gas (NAG) contributed 3.98bcf/d. This indicates that non‑associated gas is increasingly carrying its own weight in the production mix and reflects the maturation of dedicated gas development initiatives.

On a month‑on‑month basis, gas production declined marginally by 0.12 per cent from 7.94bcf/d recorded in April, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said in a statement yesterday.

Over the past five months, the organisation stated that gas production has maintained a positive trajectory, rising from 7.80bcf/d in January to 7.81bcf/d in February, 7.85bcf/d in March, and 7.94bcf/d in April.

In terms of gas utilisation during the period, export sales declined from 4.13bcf/d to 3.07bcf/d, accounting for 40 per cent of total production. However, sales to the domestic market increased from 2.03bcf/d to 2.18bcf/d, representing 26.6 per cent of total gas utilisation.

According to the NUPRC, the increase in domestic sales reflects ongoing efforts to meet local supply obligations, as the power, industrial, and gas‑based manufacturing sectors continue to expand under the national gas agenda.

A further analysis showed that 2.11bcf/d, representing 26.5 per cent of total production, was allocated to own‑use, while 0.57bcf/d, or 6.9 per cent, was flared, underscoring the country’s commitment to ending routine gas flaring by 2030.

According to the data, year‑to‑date production remained firm at an average of 7.87Bscf/d, up from 7.82Bscf/d recorded in Q1, and increased further to 7.94Bscf/d across April and May this year.