FG moves against LPG hoarding, diversion over rising cooking gas prices

By Adebola Isimijola, Lagos

The Federal Government has ordered a crackdown on the hoarding, diversion and illegal storage of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, as part of efforts to curb rising prices and guarantee adequate supply across the country.

The directive was issued by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, during an emergency stakeholders’ engagement in Abuja, according to a statement by the minister’s spokesman, Louis Ibah, on Monday.

The government said the move became necessary following the recent increase in cooking gas prices, which it described as a matter of national concern affecting households, small businesses and the economy.

Ekpo directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market oversight, develop a robust pricing framework and sanction operators involved in practices that distort the market.

He also urged the authority to collaborate with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to eliminate artificial scarcity and ensure the uninterrupted movement of LPG across the country.

“We have directed the NMDPRA to intensify monitoring, engage operators and work with security agencies to discourage hoarding, eliminate artificial scarcity, and strengthen transparency in distribution and pricing,” the minister said.

Ekpo disclosed that marketers had indicated their readiness to increase imports, while expected deliveries from new domestic facilities, including the Seplat gas facility, would boost supply in the coming weeks.

According to him, the Federal Government is also exploring a local blending initiative involving Nigeria LNG Limited, domestic producers and depot owners to improve supply, reduce dependence on imports and support price stability.

“There is no cause for panic. The Government remains committed to ensuring adequate domestic gas supply and to advancing the Decade of Gas Initiative as a pathway to cleaner cooking, industrial growth and energy security,” he added.

The statement further quoted the Chief Executive of the NMDPRA, Mr. Rabiu Umar, as saying that the authority had commenced an enforcement campaign targeting pricing and supply-chain practices in the LPG sector.

Umar warned that operators responsible for excessive price increases would face sanctions, expressing optimism that supply would improve and prices decline in the coming weeks.

“We are going to be much more aggressive in ensuring that no factor is allowed to keep prices at excessively high levels. We expect to see a significant improvement in supply and a reduction in prices before the end of next month,” he said.

The stakeholders’ meeting was attended by representatives of key gas suppliers, marketers, distributors and consumer groups, including the Nigerian Gas Association (NGA), the Major Energy Marketers Association of Nigeria (MEMAN) and the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM).