Increased import of cooking gas will reduce cost – NMDPRA

By

Faruk Shuaibu

The Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Authority (NMDPRA), Rabiu A. Umar, has stated that importation of Liquified Petroleum Gas or cooking gas is the immediate solution to curb high price of the product.

Umar in a presentation at the gas emergency meeting with stakeholders on rising prices of LPG yesterday said “imports represent the only immediate option for filling the gap created in supply, aside from the prospect of MT supply from Anoh.”

He stated that apart from the injection of LPG export volume into the domestic market, global supply disruptions and price volatilities due to the US/Israel-Iran war in the Middle East remains an issue.

He added that the situation is worsened by charging of non-cost reflective prices by LPG wholesalers and retailers while the domestic supply gap is created by incomplete domestication of local production and inadequate LPG infrastructure for distribution.

He explained that the country is expected to witness a shortfall of 165,000 Metric tons of LPG in the third quarter of 2026.

He called for an enforcement of ban on export of LPG Products as well as end to Chevron export and secure a large amount of metric tons volume into the domestic market.

“We need to increase local blending capacity and enhance it over the last two years to manage chevron volume. Also, audit of offtakers engaged in the lifting of NLNG, NPPC Volumes to ensure more effective product distribution and pricing efficiency. A situation where key downstream players with comprehensive LPG storage and distribution logistics on ground require immediate action,” he said.

He said monitoring and enforcement in supply and distribution must be intensified by engaging relevant agencies to facilitate access to foreign exchange for critical LPG imports where necessary.

He said the country needs to deploy technology-enabled product tracking systems to curb diversion and improve market integrity.

“We must expand LPG storage, terminal and distribution infrastructure nationwide and increase domestic LPG production through accelerated gas processing projects as well as prioritize domestic LPG supply obligations by gas producers,” he added.

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