The Nigerian government has responded to the recent surge in the price of cooking gas (LPG) by ordering a clampdown on marketers accused of hoarding and exploiting consumers.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, issued the directive, mandating the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify its monitoring of LPG depots across the country. The goal is to prevent sharp practices that are worsening the current scarcity and price hike.
The Minister explained that the price increase was primarily caused by two factors:
- A recent industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the Dangote Refinery.
- Ongoing maintenance activities at the Nigeria LNG Train 4 facility.
These disruptions led to a temporary shortfall in supply, creating an “artificial scarcity” that some marketers are allegedly exploiting by inflating prices.
The government has assured the public that the situation is temporary and that prices are expected to stabilize in the coming weeks as operations at the Dangote Refinery and NLNG return to normal. The Nigerian National Petroleum Company Limited (NNPCL) has also stated that the price of cooking gas should drop as supply chains are restored.
While the government and NNPCL are blaming the PENGASSAN strike and maintenance work, some industry stakeholders, such as the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR), have distanced themselves from the price hike. They argue that retailers are not responsible, as they are simply passing on the high prices at which they purchase the product from plant owners and depots.
