The Federal Government has unveiled a raft of measures aimed at stemming the recent rise in the price of liquefied petroleum gas (LPG), popularly known as cooking gas, including a directive to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring and work with security agencies to clamp down on hoarding and market manipulation.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this at an emergency stakeholders’ engagement convened to address the recent spike in LPG prices and its implications for households, businesses and the country’s clean energy transition agenda.
Addressing operators across the gas value chain, the minister said the increase in cooking gas prices had become a matter of public welfare and economic stability, stressing that the government would not allow temporary disruptions to undermine access to clean and reliable energy.
“When a family refills a cooking gas cylinder at a higher price, it affects the household budget. When a food vendor, restaurant or small business pays more for LPG, operating costs rise and consumers feel the effect.
“That is why today’s engagement is not merely an industry conversation; it is a matter of public welfare, economic stability and national responsibility,” he said.
Ekpo noted that concerns being expressed by Nigerians over the rising cost of cooking gas were legitimate, adding that the Federal Government remained committed to ensuring adequate domestic gas supply under its Decade of Gas Initiative.
“There is no cause for panic. Government remains committed to adequate domestic gas supply and to the ‘Decade of Gas Initiative’ as a pathway for cleaner cooking, industrial growth and energy security.
“Our message is simple: more supply, fairer distribution, stronger discipline and better outcomes for Nigerians,” he stated.
According to the minister, the current price pressure reflects temporary supply disruptions and broader market conditions, including reduced domestic output from key suppliers and weak import volumes in recent months.
He explained that foreign exchange volatility, rising logistics costs, infrastructure limitations and movements in international LPG prices had compounded the pressure on the domestic market, necessitating coordinated interventions across the value chain.
Ekpo stressed that improving domestic supply and reducing dependence on imports remained critical to ensuring that Nigeria’s gas resources served the needs of local consumers first.
He said the government’s directive prioritising Nigerian-produced LPG for domestic consumption remained central to strengthening local availability and preventing diversion of products meant for the domestic market.
To tackle distribution bottlenecks and restore confidence in the market, the minister directed the NMDPRA to intensify surveillance and engagement with operators while collaborating with security agencies to discourage hoarding, eliminate artificial scarcity and improve pricing transparency.
He warned that practices such as speculative storage, allocation inefficiencies and pricing distortions should not be allowed to undermine public confidence.
“Improved supply must be matched by efficient distribution and responsible conduct. Bottlenecks, hoarding, speculative storage, allocation inefficiencies, logistics constraints and pricing distortions must not undermine public confidence,” he said.
As part of immediate interventions, marketers have indicated their readiness to increase imports where necessary to bridge supply gaps, while expected deliveries from new domestic facilities, including the Seplat gas facility, are expected to boost supplies in the coming weeks.
The government is also exploring a local blending initiative involving Nigeria LNG Limited (NLNG), domestic producers and the operator of the Port Harcourt plant.
The initiative is expected to move locally produced LPG closer to consumers, reduce import dependence and logistics costs, improve supply reliability and support more stable prices.
Ekpo urged stakeholders to focus on practical and measurable solutions that would guarantee reliable LPG supply across the country, eliminate hoarding and market manipulation, strengthen pricing transparency and encourage investments in storage, transportation and retail infrastructure.
He said building a more resilient and competitive domestic LPG market would be critical to achieving the country’s clean energy aspirations and ensuring affordable cooking gas for millions of Nigerians.
Presenting data on the state of the domestic LPG market, the Executive Director, Distribution Systems, Storage and Retailing Infrastructure at the NMDPRA, Ogbugo Ukoha, said planned LPG supply volumes for June are expected to exceed estimated national demand, subject to timely deliveries and efficient distribution.
Ukoha disclosed that the NMDPRA had tightened oversight of the market and commenced an audit of off-takers lifting products from Nigeria LNG Limited and the Nigerian National Petroleum Company Limited (NNPC).
According to him, the audit is intended to ensure more efficient distribution and pricing, amid concerns that traders currently account for a large share of product allocations while terminal operators with substantial storage and distribution infrastructure have limited access to supplies.
He said the authority was considering expanding the number of terminal operators eligible to become direct off-takers from domestic producers to improve efficiency across the distribution chain.
Ukoha revealed that oil marketing companies performed only 4.2 per cent of their allocated volume of 390,000 metric tonnes in the second quarter, while a supply gap of about 165,000 metric tonnes is projected for the third quarter.
To bridge the shortfall, he said the regulator had commenced the issuance of import permits and was tracking previously issued approvals to ensure compliance and performance.
Additional supplies are also expected from the Anoh Gas project, which is projected to commence deliveries of about 50 metric tonnes per day from July.
He added that the authority was pursuing the domestication of Chevron’s LPG volumes and intensifying monitoring and enforcement across the supply chain.
According to Ukoha, recent engagements involving terminal operators, domestic producers and suppliers have already yielded positive results, with LPG supply sufficiency improving from 11 days to 22 days.
He also disclosed that profiteering by marketers was being addressed through ongoing regulatory actions.
