The Federal Government has ordered a clampdown on marketers engaged in hoarding or diversion of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, following the recent surge in the price.
The government directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other regulators to intensify market surveillance, investigate product hoarding and diversion, and sanction operators found manipulating the market.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the directive at an emergency stakeholders’ engagement on rising LPG prices, following deliberations with regulators, producers, marketers and other industry players.
The government identified several factors responsible for the current rise in cooking gas prices, including global supply disruptions and price volatility arising from the Israel-Iran conflict.
It also linked the situation to shortfalls on domestic supply created by incomplete domestication of local cooking gas production, low import volumes, non-cost-reflective pricing by some wholesalers and retailers, inadequate distribution infrastructure, and logistics challenges.
Ekpo therefore charged the NMDPRA to work with Nigeria Liquefied Natural Gas Limited (NLNG), local LPG plants and major producers to increase domestic availability.
Ekpo urged them to improve market coordination and eliminate distribution bottlenecks to check rising cooking gas price.
The minister said: “NMDPRA and other regulators should intensify monitoring, publish market updates, investigate hoarding and diversion, and sanction operators who manipulate the market.
“Producers and domestic suppliers must prioritise the Nigerian market, provide reliable supply forecasts, and ensure that domestic allocations reach consumers without diversion or delay.
“Depot owners and terminal operators should publish loading schedules, disclose stock and evacuation levels, ensure fair access for marketers, and improve truck turnaround time,” he said.
Ekpo also enjoined security agencies to support regulators in tackling diversion, hoarding, illegal storage, and disruptions to legitimate LPG distribution.
“Security agencies, the Department of State Service (DSS), the Economic and Financial Crime Commission (EFCC), and the Nigerian Police Force (NPF) should support regulators in preventing diversion, hoarding, illegal storage, and disruption of legitimate supply movement,” he said.
Ekpo enjoined marketers and importers to bring in additional LPG volumes where necessary, disclose cargo arrival schedules, price products responsibly, and avoid speculative withholding of supplies.
He directed transporters and logistics operators to increase truck availability, clear delivery bottlenecks, maintain transparency in haulage costs and ensure prompt movement of products nationwide.
The minister further charged retailers and plant operators to display prices openly, avoid arbitrary price increases, maintain safe dispensing practices, and promptly report supply disruptions.
