LPG Prices: FG Convenes Emergency Meeting, Invites DSS, EFCC, Police to End Diversion, Hoarding, Others

• Ekpo: Govt committed to lowering cooking gas rates, vows stricter monitoring 

•NMDPRA moves to bridge projected 165,000MT Q3 shortfall with additional import licences 

•Warns against non-compliance with domestic obligation 

•NALPGAM  decries profiteering by middlemen

Emmanuel Addeh in Abuja

The federal government yesterday convened an emergency stakeholders’ meeting on the rising price of cooking gas, stressing that key security agencies, including the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force, will be involved in tackling product diversion, hoarding, speculative storage and other market practices blamed for escalating prices.

At the meeting in Abuja, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the government remained committed to ensuring moderate cooking gas prices and improving access to cleaner energy for households, stressing that Nigeria’s gas resources must first serve domestic consumers.

The intervention came as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it was putting plans in place to mitigate the projected supply shortfall of about 165,000 metric tonnes in the third quarter of 2026.

Besides, it warned operators against violating domestic gas supply obligations amid growing concerns over availability and affordability.

Ekpo noted that improved supply alone would not resolve current challenges unless accompanied by efficient distribution and responsible market conduct, identifying hoarding, allocation inefficiencies, logistics constraints, speculative storage and pricing distortions as major impediments to market stability.

Consequently, Ekpo directed the NMDPRA to intensify market surveillance, engage operators across the value chain and collaborate with security agencies to eliminate artificial scarcity, discourage hoarding and strengthen transparency in product distribution and pricing.

The minister stated that there was the need to involve the security agencies in the sector to ensure the return of sanity. “Security agencies (DG DSS, Chairman EFCC, IG Nigerian Police Force: (will) support regulators in preventing diversion, hoarding, illegal storage, and disruption of legitimate supply movement along key LPG corridors,” he stated.

According to him, improved supply must be matched by efficient distribution and responsible conduct, insisting that bottlenecks, hoarding, speculative storage, allocation inefficiencies, logistics constraints, and pricing distortions must not undermine public confidence.

In the immediate term, he explained that marketers have indicated readiness to increase imports where necessary, while expected deliveries from new domestic facilities, including the Seplat gas facility, will support supply in the coming weeks.

“We are also exploring a local blending initiative with Nigeria LNG Limited, local producers, and the Port Harcourt plant operator to move locally produced LPG closer to the market, reduce import pressure and logistics costs, improve reliability, and support more stable pricing,” the minister assured.

Closing the session, the minister directed that producers and domestic suppliers must prioritise the Nigerian market, provide reliable supply forecasts, and ensure that domestic allocations reach consumers without diversion or delay.

Besides, he instructed that depot owners and terminal operators should publish clear loading schedules, report stock and evacuation levels, treat marketers fairly, and improve truck turnaround time.

“Marketers and importers (must) bring in additional volumes where required, share arrival and discharge timelines, price responsibly, and avoid withholding product for speculative gain (while) transporters and logistics operators (must) increase truck availability, clear delivery bottlenecks, keep haulage costs transparent, and move product quickly to areas of high demand,” he instructed.

As for retailers and plant operators, the minister maintained that they must display prices clearly, avoid arbitrary increases, maintain safe dispensing practices, and report supply disruptions promptly.

He also urged consumer protection and public communication agencies to keep the public informed, provide reporting channels, counter misinformation, and promote safe LPG handling practices.

“Let me reassure Nigerians that the federal government will remain vigilant, monitoring developments, intervening where necessary, protecting consumers, supporting responsible investment, and advancing a gas-powered economy that delivers cleaner cooking, energy security, and improved quality of life,” he added.

In a presentation made on his behalf by Ogbugo Ukoha, the Executive Director of Distribution Systems, Storage, and Retailing Infrastructure (DSSRI), the Authority Chief Executive (ACE) of the NMDPRA, Rabiu Umar, disclosed that ordinarily its indicative pricing model shows that prices should not exceed between N1,018 and N1,244 per kilogramme.

The authority attributed the supply challenges partly to continued exports of locally produced LPG, global supply disruptions linked to tensions in the Middle East, inadequate import volumes, infrastructure limitations and what it described as non-cost-reflective pricing practices.

The regulator maintained that the full domestication of locally produced LPG would significantly improve availability and reduce pressure on prices, arguing that blending capacity within the country had expanded enough to absorb the exported volumes.

Although average daily LPG supply rose to 5,040 metric tonnes in June from 4,262 metric tonnes in May, improving national supply sufficiency from 11 days to 22 days, it projected that there could be a supply gap of 165,000 metric tonnes in the third quarter if corrective measures were not urgently implemented.

To address the situation, the regulator said it had commenced audits of LPG off-takers lifting products from NLNG and NNPC facilities, intensified market monitoring and enforcement activities, and was working to facilitate foreign exchange access for critical imports.

It also revealed plans to deploy technology-driven product tracking systems to curb diversion and improve accountability across the supply chain.

Also, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) expressed concern over what it described as profiteering by middlemen in the LPG value chain, insisting that market distortions rather than supply shortages were increasingly contributing to high consumer prices.

Former Chairman of the association, Oladapo Olatunbosun, urged regulators to ensure that the benefits of improved domestic supply reached end-users and were not captured by intermediaries through excessive mark-ups and speculative trading.

“The truth of the case is this…we do not have a supply challenge, but we have profiteering issues across the board, including the marketers,” he stated

Earlier, the Permanent Secretary, Ministry of Petroleum, Patience Oyekunle, rehashed the reason for the emergency meeting, stressing that the impact of higher gas prices was telling on households in the country.

“LPG remains a critical component of Nigeria’s energy needs, …the recent increase has raised a lot of concerns, and it’s important that we look at it critically. What are the underlying factors? Let us identify practical solutions, and what are these practical solutions?

“First of all, to improve affordability, to ensure supply stability, and of course, to reduce emissions. So this meeting actually provides an opportunity for government and industry stakeholders to engage constructively and develop measures that will support a more efficient and resilient LPG market for the benefit of Nigerians,” she stated.

Some other organisations represented at the meeting were the Independent Petroleum Producers Group (IPPG), the Major Energy Marketers Association of Nigeria (MEMAN), Seplat Energy, Chevron, and key associations operating in the sector.