ABUJA – To combat skyrocketing cooking gas (LPG) prices, the Federal Government held an emergency stakeholder meeting and ordered regulators to crack down on hoarding, speculative storage, and artificial scarcity.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who convened the meeting on Monday in Abuja, described the rising cost of cooking gas as a major public welfare concern requiring urgent and coordinated intervention across the entire LPG value chain.
Speaking during the engagement, Ekpo said the increase in LPG prices was placing additional financial pressure on households, small businesses and commercial users who depend on cooking gas for daily operations.
“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”, the minister said.
He noted that the current situation highlighted the urgent need to strengthen domestic supply, reduce Nigeria’s dependence on imported LPG and ensure that the country’s vast gas resources primarily benefit Nigerians.
According to him, the government remains committed to prioritising locally produced LPG for domestic consumption as part of broader efforts to improve availability, stabilise prices and prevent diversion of supplies meant for the local market.
Officials at the meeting identified several factors behind the recent price increases, including supply disruptions, foreign exchange challenges, inadequate distribution infrastructure and market distortions.
Providing an update on supply conditions, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed that average daily LPG supply had increased from 4,262 metric tons in May to 5,040 metric tons in June.
The authority further stated that projected supply volumes for June were expected to surpass estimated national demand, provided deliveries and distribution channels function efficiently.
NMDPRA Chief Executive, Rabiu Umar, attributed the market challenges to a combination of structural and external factors, including insufficient distribution facilities, incomplete domestication of locally produced LPG, non-cost-reflective pricing practices among some wholesalers and retailers, and disruptions in global supply chains.
He also pointed to growing geopolitical tensions in the Middle East as an additional factor affecting international LPG supply and pricing dynamics.
As part of measures to address the challenge, government officials disclosed plans to pursue a local blending initiative involving Nigeria LPG Limited, indigenous producers and operators of the Port Harcourt gas processing facility. The initiative is expected to reduce reliance on imports while lowering logistics and supply costs.
The government also expressed optimism that additional volumes from the Seplat gas facility would enter the market in the coming weeks, helping to ease supply pressures and support price stability.
To curb sharp practices within the sector, Ekpo directed the NMDPRA to strengthen monitoring mechanisms and collaborate with security agencies to identify and sanction operators involved in hoarding, speculative storage and the creation of artificial scarcity.
“More supply, fairer distribution, stronger discipline, and better outcomes for Nigerians”, the minister said, outlining the government’s immediate priorities in restoring stability to the LPG market.
The stakeholder meeting brought together regulators, producers, marketers and other key industry participants as the government seeks lasting solutions to protect consumers from rising cooking gas costs and accelerate the development of a more resilient domestic LPG market.
