FG orders clampdown on marketers hoarding, diverting LPG

The Federal Government has ordered a clampdown on marketers engaged in hoarding or diversion of Liquefied Petroleum Gas (LPG), also 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.

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 authority identified several factors responsible for the current rise in LPG prices, including global supply disruptions and price volatility arising from the Israel-Iran conflict.

It also linked the situation to shortfalls in domestic supply created by incomplete domestication of local LPG 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 Ltd. (NLNG), local LPG plants and major producers to increase domestic availability.

He urged them to improve market coordination and eliminate distribution bottlenecks to check rising cooking gas price.

“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 charged 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.

“Consumer protection and public communication agencies should keep the public informed, provide reporting channels, counter misinformation, and promote safe LPG handling practices.

“These responsibilities assigned to stakeholders must translate into visible improvements for Nigerians.

“I charge every stakeholder to deliver outcomes Nigerians can see and feel,” he said.

Ekpo reiterated the government’s commitment to monitor developments, protect consumers, support responsible investment and advance a gas-powered economy.

He said the government remained committed to increasing domestic supply, reducing reliance on imports, and ensuring that Nigerian-produced LPG was prioritised for local consumption.

According to the NMDPRA, planned LPG supply volumes for June are expected to exceed estimated national demand, subject to timely delivery and efficient distribution.

“Marketers have indicated readiness to increase imports where necessary, while expected supplies from new domestic facilities, including the Seplat gas facility, will further improve market availability,” he said.

According to Ekpo, the federal government is exploring a local LPG blending initiative involving Nigeria LNG Ltd., local producers and the Port Harcourt plant operator.

He said the initiative would reduce logistics costs, improve supply reliability and support more stable prices.

Mrs Patience Oyekunle, Permanent Secretary, Ministry of Petroleum Resources, described LPG as critical to Nigeria’s energy needs.

Oyekunle said the product was also critical to the clean cooking agenda and energy transition, noting that the recent price increase had raised concerns requiring urgent attention.

She said the meeting would examine the factors driving the increase and identify practical measures to improve affordability, ensure supply stability, sustain investments and strengthen the domestic LPG market for the benefit of Nigerians.

The meeting was attended by critical stakeholders, including the Decade of Gas, Nigeria Gas Association, Seplat Energy, Chevron, NMDPRA, Nigeria Liquefied and Compressed Gas Association and Nigerian Association of Liquefied Petroleum Gas  Marketers, among others.

They expressed strong commitments to tackling the challenges and increasing domestic market supply and sufficiency.

(NAN)