Amid rising cooking gas prices, FG Orders crackdown on LPG hoarding, illegal storage

Business Pointers

By Seun Ibiyemi

The Federal Government has directed regulatory and security agencies to intensify efforts against the diversion, hoarding and illegal storage of Liquefied Petroleum Gas (LPG) as part of measures to stabilise cooking gas prices and ensure adequate supply across the country.

Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, issued the directive on Monday in Abuja during an emergency stakeholder engagement convened to address the recent increase in LPG prices and develop coordinated solutions to improve market stability.

Describing the rising cost of cooking gas as a matter of national concern, Ekpo said the development has significant implications for households, small businesses and the broader economy, stressing that the Federal Government remains committed to easing the burden on Nigerians.

He directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market oversight, establish a robust pricing framework and impose sanctions on operators found engaging in activities that distort the LPG market.

The minister also urged the NMDPRA to collaborate closely with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to enhance enforcement efforts, eliminate artificial scarcity and ensure the smooth distribution of LPG nationwide.

“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,” Ekpo said.

On supply concerns, the minister disclosed that marketers had expressed readiness to increase LPG imports, while expected deliveries from new domestic facilities, including the Seplat gas facility, would boost supply in the coming weeks.

He added that the government is exploring a local blending initiative involving Nigeria LNG Limited, domestic producers and depot owners to improve supply, reduce dependence on imports and support long-term 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 said.

Also speaking at the meeting, the Authority Chief Executive of the NMDPRA, Mr. Rabiu Umar, said the regulator had already commenced an enforcement campaign targeting pricing practices and supply-chain inefficiencies within the LPG sector.

Umar warned that operators responsible for excessive price increases and other anti-competitive practices would face severe sanctions.

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“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 stated.

The stakeholder engagement was attended by representatives of major 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).

The meeting forms part of the Federal Government’s broader efforts to deepen domestic gas utilisation, improve energy access and promote cleaner cooking solutions under the Decade of Gas Initiative.

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