FG Moves Against LPG Hoarding As Cooking Gas Prices Surge

By UWAKMFON DAN

Federal Government Unveils Emergency Measures on LPG Pricing

THE Federal Government has ordered an intensified crackdown on the hoarding, diversion and illegal storage of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, as part of efforts to halt rising prices and guarantee stable 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’ meeting in Abuja convened to address growing concerns over the recent increase in cooking gas costs.

The meeting brought together regulators, marketers, distributors and consumer representatives to identify practical solutions to supply challenges and market distortions affecting households and businesses.

According to the minister, the steady increase in LPG prices has become a national concern because of its impact on family budgets, small enterprises and the broader economy.

Security Agencies Drafted Into Enforcement Campaign

As part of the intervention, the minister directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen surveillance of the LPG market and develop a more transparent pricing framework.

He also instructed the regulator to work closely with security agencies, including the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force, to identify and prosecute operators involved in activities capable of creating artificial scarcity.

Officials believe that illegal stockpiling, supply diversion and speculative practices have contributed to price volatility in several parts of the country.

The government said enforcement measures would focus on ensuring uninterrupted product movement, eliminating supply bottlenecks and protecting consumers from unjustified price hikes.

Supply Expansion Plans Underway

Beyond enforcement, the government is pursuing measures aimed at increasing the availability of cooking gas in the domestic market.

Ekpo disclosed that marketers had already indicated willingness to increase imports while new domestic production facilities are expected to boost supply in the coming weeks.

Particular attention is being placed on anticipated output from the Seplat gas facility, which officials believe could significantly improve market availability and reduce pressure on prices.

The government is also evaluating a local blending initiative involving Nigeria LNG Limited, domestic gas producers and depot operators. The initiative is expected to strengthen local supply chains and reduce dependence on imported LPG.

Regulator Warns Against Market Manipulation

The Chief Executive of the NMDPRA, Mr. Rabiu Umar, announced that the Authority had already commenced a nationwide enforcement operation targeting pricing abuses and irregularities within the LPG value chain.

According to him, operators found responsible for excessive and unjustifiable price increases would face regulatory sanctions.

Umar expressed confidence that ongoing interventions would produce noticeable results within weeks, adding that authorities expect supply conditions to improve and prices to moderate before the end of the following month.

Balancing Energy Security and Affordability

The renewed government intervention highlights the growing importance of LPG in Nigeria’s energy transition strategy.

Over the past decade, cooking gas has increasingly become an alternative to firewood, charcoal and kerosene, particularly in urban areas. However, recurring price spikes have raised concerns about affordability and the sustainability of clean cooking initiatives.

Industry stakeholders at the Abuja meeting agreed that maintaining stable LPG prices remains critical to expanding domestic gas adoption, improving energy access and supporting the Federal Government’s Decade of Gas Initiative.

Officials insist that while challenges remain, coordinated enforcement, increased supply and stronger market oversight are expected to restore stability and protect consumers from future disruptions.