WorldStage– The Federal Government of Nigeria is making moves to stabilise Liquefied Petroleum Gas (LPG) prices and ensure adequate supply across the country with a directive to regulatory and security agencies to clamp down on the diversion, hoarding and illegal storage of the commodity.
Minister of State Petroleum Resources (Gas), Rt Hon. Ekperikpe Ekpo, gave the directive in Abuja during an emergency stakeholder engagement convened to develop coordinated solutions to the recent increase in cooking gas prices.
Describing the rising cost of LPG as a matter of national concern with significant implications for households, small businesses and economic stability, Ekpo said the Federal Government remained committed to easing the burden on Nigerians.
He directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market oversight, develop a robust pricing framework to guide the market, and sanction operators engaged in practices that distort the market.
Ekpo also urged the NMDPRA to collaborate with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to support enforcement efforts, eliminate artificial scarcity and ensure the uninterrupted movement of LPG across the country.
“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,” he said.
On supply, Ekpo said marketers had indicated their readiness to increase imports, while anticipated deliveries from new domestic facilities, including the Seplat gas facility, were expected to boost supply in the coming weeks.
The Government is also exploring a local blending initiative involving Nigeria LNG Limited, domestic producers and depot owners, aimed at improving supply, reducing dependence on imports and supporting greater 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.
Authority Chief Executive of the NMDPRA, Mr. Rabiu Umar, who also addressed the meeting, said the Authority had commenced an enforcement campaign targeting pricing and supply-chain practices, warning that operators responsible for excessive price increases would face stiff sanctions.
“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,” Umar said.
The engagement was attended by senior representatives of key 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), among others.
