The Federal Government has attributed the recent increase in the price of cooking gas across the country to foreign exchange volatility, rising logistics and transportation costs, infrastructure constraints and other supply chain challenges.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this in a statement issued in Abuja by his spokesman, Louis Ibah, while reacting to concerns expressed by Nigerians over the rising cost of Liquefied Petroleum Gas.
Ekpo said the recent price increase should not be interpreted as a failure of government policy, but as a reflection of prevailing market realities, including fluctuations in international LPG prices.
“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,” he said.
The minister reassured Nigerians that the Federal Government remains committed to ensuring adequate, reliable and affordable gas supply for households, industries and power generation across the country.
According to him, the commitment is reflected in ongoing interventions aimed at stabilising the domestic LPG market, including the directive that all LPG produced in Nigeria should be prioritised for local consumption.
Ekpo said the policy had already strengthened domestic supply, reduced dependence on imports and improved market resilience.
To address the current situation, the minister said he had directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to intensify engagement with producers, marketers and other stakeholders in order to sustain supply and enhance market stability.
He added that marketers had also committed to increasing import volumes to complement domestic production.
Ekpo further stated that the commencement of LPG deliveries from the new Seplat gas facility in July would significantly boost national supply.
He said no producer was exporting LPG volumes designated for the domestic market, stressing that 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 7.93 billion standard cubic feet per day in May 2026, representing a 0.63 per cent year-on-year increase from 7.88bcf/d recorded in the corresponding period of 2025.
According to data from the Nigerian Upstream Petroleum Regulatory Commission, associated gas accounted for 3.96bcf/d, while non-associated gas contributed 3.98bcf/d in May.
The figures indicate that non-associated gas is increasingly contributing significantly to the production mix, reflecting the growth of dedicated gas development projects.
On a month-on-month basis, however, gas production declined marginally by 0.12 per cent from 7.94bcf/d recorded in April.
The NUPRC said gas production had maintained a positive trajectory over the past five months, 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 utilisation, export sales declined from 4.13bcf/d to 3.07bcf/d, accounting for 40 per cent of total production.
Domestic market sales, however, increased from 2.03bcf/d to 2.18bcf/d, representing 26.6 per cent of total gas utilisation.
The commission said the increase in domestic sales reflected 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 breakdown 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.
The NUPRC said the gas flaring figure underscored the need to sustain Nigeria’s commitment to ending routine gas flaring by 2030.
Year-to-date gas production remained firm at an average of 7.87bcf/d, up from 7.82bcf/d recorded in the first quarter, and increased further to 7.94bcf/d across April and May 2026.
The government maintained that with domestic prioritisation, regulatory monitoring and new supply from ongoing gas projects, the outlook for LPG availability remains positive despite current price pressures.
The post FG Blames Cooking Gas Price Hike On FX Volatility, Logistics Costs, Supply Constraints, Says Policy Not Failing appeared first on TheNigeriaLawyer.
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