BREAKING: Gas price rises to $2.18/MMBtu

The Nigerian Midstream and Downstream Petroleum Regulatory Authority on Tuesday announced an increase in the Domestic Base Price of natural gas to $2.18 per MMBtu, effective April 1, 2026.

The new price represents a marginal rise from the 2025 rate of $2.13/MMBtu for power generation companies.

The adjustment reflects an increase of five cents, equivalent to about 2.35 per cent compared to the previous year’s price.

The authority stated, “Taking into cognisance the provisions of the Petroleum Industry Act, 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.”

The regulator said the pricing applies to gas supplied to key sectors, including power and industries.

It added that commercial users will now pay $2.68/MMBtu, up from $2.63/MMBtu in 2025.

According to the authority, the adjustment was made in line with prevailing market conditions and existing regulatory frameworks.

The new pricing is expected to guide gas supply and pricing in the domestic market going forward.

The statement further noted that commercial consumers will pay $2.68/MMBtu under the revised structure, while gas-based industries will be charged based on an established regulatory formula.

The regulator said the move is aimed at ensuring adequate gas supply to the domestic market while maintaining investor confidence.

The Domestic Base Price represents the minimum rate at which natural gas can be sold in the domestic market.

The increase is expected to have implications for the power generation sector, as Nigeria relies on gas to produce over 70 per cent of its electricity.(Punch)