The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has ordered a clampdown on marketers who are hoarding or exploiting consumers, following a sharp increase in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. This directive was announced in a statement by the minister’s spokesman, Louis Ibah, on Monday.
The price of cooking gas had recently soared from an average of N1,000 to about N2,000 per kilogramme in some areas. This surge and deepening scarcity persisted even after the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) during its rift with the Dangote refinery was suspended.
Causes and Expected Resolution
Expressing concern, Ekpo appealed for calm, assuring Nigerians that the situation is temporary and would normalise by next week.
The Minister identified two primary causes for the price hike:
Industrial action by PENGASSAN at the Dangote refinery, which temporarily halted LPG loading.
Ongoing maintenance activities at the Nigeria LNG (NLNG) Train 4 facility, which reduced the volume of gas available for the domestic market.
These disruptions led to a supply shortfall and the subsequent price increase due to a demand-supply imbalance.
Ekpo stated that the situation is already improving. Operations have resumed at the Dangote refinery, with LPG loading already underway. Additionally, the Bonny River Terminal, operated by Seplat Energy, has commenced loading, and NLNG is gradually restoring normal operations as its maintenance nears completion. These developments are expected to stabilise supply by next week, leading to a gradual reduction in prices.
Deregulation and Enforcement
Reiterating that the LPG market remains deregulated, Ekpo urged marketers, distributors, and all stakeholders to act patriotically, desist from hoarding, and refrain from exploiting consumers for profit.
To ensure compliance, the Minister has mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring of LPG depots nationwide. This intensified surveillance aims to prevent product hoarding and other unethical practices that could worsen the current situation.
The Minister reaffirmed the Federal Government’s commitment to ensuring a sufficient and affordable gas supply for all households across the country.
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