The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced an increase in the price of natural gas designated for power generation companies. The new rate, effective April 1, 2026, is set at $2.18 per metric million British thermal units (MMBTU).

This adjustment marks a $0.05 increase from the prior rate of $2.13/MMBTU. The regulator issued a circular detailing this change on Tuesday.

The authority also released updated domestic base price (DBP) and wholesale gas prices for the domestic market, aligning with the Petroleum Industry Act (PIA) and current market conditions. The DBP serves as the minimum price for natural gas sales within Nigeria.

The revised pricing structure reflects a marginal increase across key gas segments in the domestic market. The NMDPRA stated that the domestic base price is determined based on key principles outlined in the Petroleum Industry Act.

Specifically, commercial users will now face a price of $2.68/MMBTU, an increase from the previous $2.63/MMBTU. Furthermore, gas-based industries, including those involved in ammonia, urea, methanol, and low sulphur diesel production, will operate within a price band of $0.9/MMBTU as the floor and $2.18/MMBTU as the ceiling.

These adjustments signify a gradual upward trend in domestic gas pricing, influenced by both regulatory considerations and prevailing market realities.