The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it will issue and closely monitor import permits to bridge 165,000-metric-tonnes of Liquefied Petroleum Gas (LPG) supply gap in the third quarter of 2026.
The Authority Chief Executive, Rabiu Umar, disclosed this on Monday in Abuja during an emergency stakeholders’ meeting on rising LPG prices convened by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo.
Umar described imports as the immediate solution to the LPG supply shortfall, saying the measure forms part of the authority’s immediate and medium-term strategies to boost the supply of cooking gas and stabilise prices nationwide.
Umar said the regulator had engaged terminal operators, domestic producers and other suppliers, leading to an improvement in LPG supply sufficiency from 11 days to 22 days, while efforts were ongoing to address profiteering by marketers.
“Profiteering by marketers is being addressed.
“The projected third quarter supply gap is 165,000 MT. NMDPRA will issue import permits/follow up issued permits on performance. There will be injection of LPG export volume into the domestic market.
“Anoh Gas is expected to commence supplying of about 50 metric tonnes of LPG per day from July 2026, while efforts are underway to channel more locally produced LPG into the domestic market, including volumes currently exported,” he said.
Umar said the authority would audit off-takers lifting LPG from the Nigerian Liquefied Natural Gas (NLNG) and the Nigerian National Petroleum Company (NNPC Ltd.) to improve distribution efficiency and pricing.
He added that NMDPRA had commenced intensified monitoring and enforcement across the LPG supply chain to curb diversion and other market abuses.
He said the authority would support the expansion of LPG storage, terminal and distribution infrastructure, accelerate domestic gas processing projects, prioritise local LPG supply and facilitate access to foreign exchange for critical imports where necessary.
“NMDPRA will deploy technology to track product movement, develop a tariff regulatory framework to promote fair pricing and leverage expanded private sector investments in LPG storage and cylinder manufacturing to strengthen nationwide supply.
“NMDPRA will work to return prices to levels recorded about a year ago, ensure locally produced LPG remains cheaper than imported volumes.
“It will support infrastructure investments through the Midstream and Downstream Gas Infrastructure Fund (MDGIF) and engage Chevron and other industry players to boost domestic supply.”
In a presentation, Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retail Infrastructure, NMDPRA attributed the recent surge in LPG prices to inadequate domestic supply, low imports, profiteering and distribution challenges.
Ukoha, while vowing to enforce measures to stabilise the market decried the fact that in spite of a directive requiring domestic producers to prioritise local supply, some volume continued to be exported.
He said the authority had engaged stakeholders to address technical and logistics constraints, including proposals to blend exported LPG for domestic consumption.
Ukoha said regulatory interventions had improved LPG supply sufficiency from 11 days to 22 days, with average daily supply rising to 5,040 metric tonnes (mt) as of June 19 from 4,262 mt in May, following the arrival of four import cargoes totalling about 16,000 metric tonnes.
He, however, warned that marketers would no longer be allowed to profiteer as supply improves.
Ukoha added that the authority would fast-track licensing of LPG storage and blending facilities, expand distribution infrastructure and accelerate domestic gas processing projects to boost local production.
He expressed confidence that the measures would increase supply and bring down LPG prices from July.
(NAN)
