Nigeria’s LPG Supply Falls Short of Demand as Cooking Gas Prices Hit N1,800/kg

By Àkànní Olúwaségún Michael

Nigerian households continued to pay as much as N1,800 per kilogram for cooking gas in May 2026 despite increased gas production and export activity, as domestic demand for liquefied petroleum gas (LPG) outpaced available supply.

Data contained in the latest Midstream and Downstream Petroleum Factsheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that LPG retail prices ranged between N1,100 and N1,800 per kilogram during the month, reflecting persistent affordability challenges for consumers.

The report indicated that average daily LPG supply stood at 4,100 metric tonnes, while consumption was higher at 4,500 metric tonnes per day, leaving a supply gap of about 400 metric tonnes daily.

The shortfall highlights the continuing pressure on Nigeria’s domestic cooking gas market despite broader improvements in the country’s gas sector.

According to the NMDPRA, total gas supplied in May averaged 4.984 billion standard cubic feet (Bscf) per day. Of this volume, 2.851 Bscf/day was supplied to the Nigeria LNG (NLNG) plant, while 2.133 Bscf/day was delivered to the domestic market.

The figures underscore Nigeria’s growing gas production capacity as the country pursues its Decade of Gas agenda aimed at boosting industrialisation, energy access and export earnings.

Export activity also remained strong during the month. LNG exports averaged 118,984 cubic metres per day, while pipeline gas exports stood at 0.116 Bscf/day.

While the data point to a stronger overall gas sector, the domestic LPG market appears to be facing a different reality, with supply struggling to keep pace with demand from households and businesses.

Industry analysts have repeatedly identified domestic supply constraints, logistics costs and market inefficiencies as factors contributing to elevated cooking gas prices, even during periods of increased gas production.

The latest figures suggest that rising output alone may not be sufficient to moderate prices unless LPG availability expands in line with growing consumption.

Nigeria has continued to promote natural gas as a transition fuel and a strategic economic resource, with policymakers seeking to increase domestic utilisation while maintaining export revenues.

However, the persistence of high cooking gas prices raises questions about how quickly the benefits of increased gas production can be transmitted to households, particularly at a time when many Nigerians are grappling with rising living costs.

With daily LPG consumption exceeding available supply, the NMDPRA data suggest that demand remains ahead of the market’s capacity to meet it, helping to keep retail prices elevated despite improvements in broader gas supply indicators.