The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has increased gas price supplied to the domestic market in the country.
The price increased to $2.18 per metric million British thermal units from the previous $2.13 per MMBTU, according to a circular signed by the Authority Chief Executive of NMDPRA, Engr. Saidu A. Mohammed, which also disclosed that the hike takes effect from April 1, 2026.
It also fixed prices for gas-based industries including ammonia, urea, methanol, and low Sulphur diesel at a floor price of $0.9 per MMBTU and a ceiling price of $2.18 per MMBTU.
Commercial users of the product will now pay $2.68 MMBTU against the previous $2.63 cost.
In the notice, the agency explained that the domestic base price at the marketable gas delivery point, under section 167(1) of the PIA, will be determined in line with regulations incorporating key guiding principles.
It added: “The Petroleum Industry Act (PIA) 2021 assented to by the President on the 16th of August 2021 and gazetted on the 27th of August 2021 provides a clear regulatory framework for the determination of a Market-based pricing regime for the domestic gas market in Nigeria.”
“In line with Section 167, the Third and Fourth Schedule of the PIA 2021, the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) is mandated to determine the Domestic Base Price (DBP) and the marketable wholesale price of natural gas supplied to the strategic sectors as defined in Table below.
“The Domestic Base Price at the marketable gas delivery point under Section 167 (1) and other provisions of the PIA shall be determined based on regulations which incorporate among such other matters, the following principles.
“The price shall not be higher than the average of similar natural gas prices in major emerging countries that are significant producers of natural gas. Lowest cost of gas supply based on three tier cost of supply framework. Market-related prices tied to international benchmarks.
“Accordingly, taking into cognizance the provisions of the PIA, market realities, as well as the gazetted Gas Pricing and Domestic Demand Regulations, the NMDPRA hereby establishes the new Domestic Base Price as $2.18/MMBtu and wholesale prices of natural gas in the strategic sector, effective 1 April 2026, as highlighted.”