FG warns cooking gas distributors against hoarding, exploitative prices

...says supply to stabilise soon

The federal government has ordered an intensified monitoring of Liquefied Petroleum Gas (LPG) depots across the country to prevent product hoarding and other sharp practices, as the retail price continues on the high side.

According to Ekperikpe Ekpo, Minister of State Petroleum Resources (Gas), the government is concerned about the price of LPG, which has risen from between N1,000–N1,100 per kilogram to as high as N1,500–N1,700 per kilogram in some parts of the country.

Ekpo, in a statement issued to Journalists on Monday, noted that the LPG market is deregulated. He appealed to marketers, distributors, and all stakeholders along the LPG value chain to be patriotic in their dealings, desist from hoarding, and refrain from exploiting consumers for profit.

To ensure compliance, the minister mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring of LPG depots across the country to prevent product hoarding and other sharp practices capable of worsening the current situation.

The minister attributed the price hike to the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the Dangote Refinery, which temporarily halted LPG loading.

He also highlighted the impact of the ongoing maintenance activities at the Nigeria LNG Train 4 facility, which he said reduced the volume of LPG available in the domestic market.

“These disruptions led to a shortfall in supply and a consequent increase in prices due to a demand–supply imbalance.

“The situation is temporary and will normalise very soon as operations at the Dangote Refinery have now resumed, with loading of LPG to the domestic market already underway.

“Similarly, the Bonny River Terminal operated by Seplat Energy has commenced loading, while the Nigeria LNG is gradually restoring normal operations as maintenance nears completion.

“With these developments, supply to the domestic market is expected to stabilise by next week, leading to a gradual reduction in prices,” he said.

He reassured Nigerians that the federal government remains committed to ensuring sufficient and affordable gas supply to all households across the country.