Nigeria Launches Emergency Measures to Lower Surging LPG Prices

The Nigerian government is implementing emergency measures to address a sharp surge in liquefied petroleum gas (LPG) prices, which have reached N2,100 per kilogram in some areas. In Bauchi, prices rose over 41% in five months, while rates in Lagos and Abuja hit N2,000 and N1,600 per kilogram respectively by late May 2026. These spikes are driven by a year-to-date supply deficit of 91,966 metric tonnes and marketer profiteering.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) noted that supply shortages were exacerbated by Chevron Nigeria Limited exporting its entire local production of 148,222 metric tonnes between January and May 2026. In response to directives from President Bola Tinubu, the Federal Ministry of Petroleum Resources convened an emergency stakeholders' meeting to coordinate a recovery plan.

Immediate interventions focus on targeted imports to close the supply gap, while long-term goals include expanding nationwide storage, terminals, and distribution infrastructure. The NMDPRA is also auditing middlemen to encourage terminal operators to purchase directly from producers and expects additional volumes from the Anoh Gas Processing Plant starting in July 2026. Early results show national supply sufficiency increased from 11 to 22 days, with average daily supply rising from 4,262 metric tonnes in May to 5,040 metric tonnes in June 2026.