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FG orders crackdown on hoarding, tasks NMDPRA to stabilise LPG prices

The Federal Government has directed regulators in the energy sector to intensify market surveillance and work closely with security agencies to eliminate sharp practices responsible for artificial scarcity and rising prices of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.

Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, gave the directive on Monday in Abuja during an emergency stakeholders’ engagement convened to develop coordinated responses to the recent surge in cooking gas prices.

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Ekpo specifically charged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen oversight of the domestic LPG market, establish a robust pricing framework and sanction operators involved in practices that distort supply and pricing.

He also directed the downstream regulator to collaborate with security agencies to clamp down on market players engaged in diversion, hoarding and illegal storage of LPG in order to ensure adequate supply and price stability across the country.

Describing the rising cost of cooking gas as a matter of national concern with implications for households, small businesses and the wider economy, the minister assured Nigerians that the government remained committed to easing the burden on consumers.

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“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.

He further urged the regulator to work closely with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to strengthen enforcement efforts and guarantee the uninterrupted movement of LPG nationwide.

According to him, marketers have already indicated their readiness to increase imports to bridge supply gaps, while additional volumes expected from new domestic projects, including the Seplat gas facility, would improve availability in the coming weeks.

Ekpo disclosed that the Federal Government was also pursuing a local blending initiative involving Nigeria LNG Limited (NLNG), domestic producers and depot owners as part of efforts to boost supply, reduce reliance on imports and achieve greater price stability.

“There is no cause for panic. The Government remains committed to ensuring adequate domestic gas supply and advancing the Decade of Gas Initiative as a pathway to cleaner cooking, industrial growth and energy security,” he stated.

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Also speaking, the Authority Chief Executive of NMDPRA, Rabiu Umar, said the regulator had launched an enforcement campaign targeting distortions within the LPG supply chain and warned that operators responsible for excessive price increases would face severe 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.

He noted that the authority had intensified monitoring of distribution and pricing practices as part of broader efforts to improve market efficiency and protect consumers from exploitation.

The emergency engagement brought together senior representatives of key stakeholders in the gas value chain, including the Nigerian Gas Association (NGA), the Major Energy Marketers Association of Nigeria (MEMAN), the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), distributors, suppliers and consumer groups.

The latest intervention by the government comes amid concerns over the rising cost of cooking gas, which has placed additional pressure on households and businesses already grappling with elevated energy and living costs. Authorities expressed confidence that improved imports, additional domestic supply and tighter market regulation would help moderate prices and restore stability in the weeks ahead.

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