NLNG Reveals N1,600/kg Markup by Cooking Gas Offtakers

Major cooking gas offtakers in Nigeria made an excess markup of N1,600 on each kilogram of Liquefied Petroleum Gas (LPG) bought from Nigeria LNG Limited (NLNG), purchasing at N800 per kg and selling at N2,400 per kg amid recent shortages. Mr.

Adeleye Falade, Managing Director and Chief Executive Officer of NLNG, disclosed this during the NLNG Facts & Figures Presentation in Lagos. He stated that some offtakers were hoarding products at terminals, creating artificial scarcity that inflated prices beyond regulatory benchmarks.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recommended retail prices should not exceed N1,000 to N1,200 per kg. NLNG has adjusted its allocation strategy to prioritize offtakers with storage capacity and direct-to-retail networks.

Falade confirmed that NLNG has sufficient infrastructure to supply the market and that demand exceeds supply capability. Annual LPG consumption in Nigeria is projected to grow to 1.8 million tons by 2026, reflecting an increasing reliance on cooking gas.