FG moves against LPG hoarding to tackle rising cooking gas prices

The Federal Government (FG) has ordered a crackdown on the hoarding, diversion and illegal storage of Liquefied Petroleum Gas (LPG) as part of efforts to stabilise cooking gas prices and ease mounting pressure on households and businesses across the country.

Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo issued the directive during an emergency stakeholders’ meeting in Abuja convened to address the recent surge in domestic cooking gas prices.

The minister described the rising cost of LPG as a national economic concern with far-reaching implications for household welfare, small businesses and energy affordability, stressing that the government was determined to restore stability to the market.

According to a statement issued by the minister’s spokesman, Louis Ibah, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been directed to strengthen market surveillance, develop an effective pricing framework and sanction operators engaged in activities that distort supply and pricing.

Ekpo also instructed the NMDPRA to collaborate with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to curb artificial scarcity and ensure the uninterrupted movement of cooking gas 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.

The intervention comes as rising LPG prices continue to squeeze household budgets and threaten the Federal Government’s clean energy transition agenda. Higher cooking gas costs have forced many low-income households back to firewood and other traditional fuels, raising concerns about energy poverty and environmental sustainability.

On the supply side, the minister said marketers had expressed willingness to increase imports, while additional volumes from new domestic projects, including the Seplat gas processing facility, are expected to improve market supply in the coming weeks.

He disclosed that the government is also considering a domestic blending arrangement involving Nigeria LNG Limited, local producers and depot operators to deepen local supply, reduce import dependence and improve 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,” Ekpo said.

The Chief Executive of the NMDPRA, Rabiu Umar, said the regulator had already commenced an enforcement campaign targeting supply chain practices and excessive pricing.

“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.

Industry stakeholders, including representatives of the Nigerian Gas Association, the Major Energy Marketers Association of Nigeria and the Nigerian Association of Liquefied Petroleum Gas Marketers, attended the meeting.

The latest intervention underscores the government’s growing concern over rising energy costs, with policymakers seeking to balance domestic supply security, affordability and the broader objective of expanding gas utilisation as a driver of economic growth and energy transition.