FG orders security crackdown on LPG hoarding and diversion as cooking gas prices rise

FG directs security agencies to crack down on hoarding, diversion of cooking gas

 The federal government has directed security agencies and regulators to crack down on hoarding, illegal diversion and speculative storage of liquefied petroleum gas (LPG), commonly known as cooking gas, as prices of the product skyrocket across the country.   Ekperikpe Ekpo, minister of state for petroleum resources (gas), who spoke at an emergency stakeholders’ meeting in Abuja, said the Department of State Services (DSS), Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force would be involved in tackling practices contributing to higher prices.   He directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify market surveillance and work with security agencies to eliminate artificial scarcity, discourage hoarding and improve transparency in product distribution and pricing.   Ekpo said marketers had expressed willingness to increase imports where necessary, while new domestic supplies, including from the Seplat gas facility, would boost availability 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 said.   “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 added that retailers should display prices clearly, avoid arbitrary increases and promptly report supply disruptions.     Rabiu Umar, chief executive officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in a presentation, said LPG wholesalers and retailers are charging non-cost reflective prices, pushing cooking gas prices to as high as N2,100 per kilogramme despite significantly lower indicative prices issued by the regulator.   According to NMDPRA, consumers across the country are paying far above the regulator’s indicative pricing benchmarks due to marketer profiteering and distribution bottlenecks.   The NMDPRA said cooking gas sells for between N1,600/kg and N2,100/kg in the south-west despite an indicative price range of N1,018/kg to N1,177/kg.   In the north-central, LPG prices range from N1,550/kg to N1,950/kg against an indicative benchmark of N1,066/kg to N1,224/kg, while consumers in the south-south pay between N1,400/kg and N2,000/kg compared with an official guide of N1,021/kg to N1,179/kg.   The NMDPRA attributed the price disparity to non-cost-reflective pricing and distribution challenges, while warning that domestic LPG supply is being constrained by exports.   It said Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026 and exported the entire volume, accounting for 22.93 percent of national output.   The regulator said it would engage the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the ministry of petroleum resources to secure more LPG for the domestic market.   The report showed that NLNG was the largest producer during the period with 187,559 metric tonnes or 29.01 percent, followed by the Dangote Petroleum Refinery with 105,127 metric tonnes or 16.26 percent.

19 hours ago

Cooking gas sells for N2,100/kg due to marketers charging non-cost reflective prices -NMDPRA

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says liquefied petroleum gas (LPG) wholesalers and retailers are charging non-cost-reflective prices, pushing cooking gas prices as high as N2,100 per kilogram despite significantly lower indicative prices issued by the regulator.   The authority disclosed this in a presentation delivered by Rabiu Umar, chief executive officer (CEO) of the NMDPRA, at an emergency stakeholders’ meeting convened by the Ministry of Petroleum Resources over rising LPG prices.   According to NMDPRA, consumers across the country are paying far above the regulator’s indicative pricing benchmarks due to marketer profiteering and distribution bottlenecks.   The NMDPRA said cooking gas sells for between N1,600/kg and N2,100/kg in the south-west despite an indicative price range of N1,018/kg to N1,177/kg.   In the north-central, LPG prices range from N1,550/kg to N1,950/kg against an indicative benchmark of N1,066/kg to N1,224/kg, while consumers in the south-south pay between N1,400/kg and N2,000/kg compared with an official guide of N1,021/kg to N1,179/kg.   The authority attributed the disparity to “non-cost reflective pricing” by wholesalers and retailers as well as infrastructure constraints affecting product distribution.   On May 25, cooking gas price rose to N2,000/kg in Lagos and N1,600 in Abuja.   CHEVRON EXPORTED ALL LPG PRODUCED BETWEEN JANUARY AND MAY The regulator also raised concerns over domestic supply shortages, saying a significant portion of locally produced LPG is being exported instead of being supplied to the domestic market.   According to the presentation, Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026 but exported the entire volume.   The authority said Chevron accounted for 22.93 percent of total LPG production during the period.   NMDPRA said engagements would be required with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Petroleum Resources to address the situation and secure additional volumes for the domestic market.   The report showed that Nigeria LNG (NLNG) remained the largest producer during the period with 187,559 metric tonnes, representing 29.01 percent of total output, followed by the Dangote Petroleum Refinery with 105,127 metric tonnes or 16.26 percent.   ‘NIGERIA RECORDS 91,966MT LPG SUPPLY GAP’   The authority further said Nigeria recorded a year-to-date LPG supply deficit of 91,966 metric tonnes between January 1 and June 18, 2026.     According to the report, total supply during the period stood at 565,106 metric tonnes, compared with a benchmark requirement of 657,072 metric tonnes.   The deficit reduced market coverage efficiency to 86 percent, down from 88.4 percent recorded in 2025.     NMDPRA attributed part of the shortfall to poor import performance by oil marketing companies (OMCs).   It said marketers allocated import quotas totalling 390,000 metric tonnes for the second quarter achieved only 4.2 percent of the approved volume.     The NMDPRA added that Nigeria could face a supply gap of 165,000 metric tonnes in the third quarter if current supply challenges persist.   The authority also identified middlemen as a major contributor to rising prices.     According to the regulator, traders rather than terminal operators are now the dominant off-takers of LPG from producers, forcing operators with storage and distribution infrastructure to buy products through intermediaries.   NMDPRA said it has commenced audits and enforcement actions aimed at increasing the number of terminal operators that can purchase products directly from producers.   The regulator added that recent interventions have improved LPG stock sufficiency from 11 days to 22 days.   As of June 21, Nigeria’s LPG stock stood at 85.87 million kilograms, while average daily supply increased to 5,040 metric tonnes in June from 4,262 metric tonnes recorded in May.   The authority said it is also working to improve foreign exchange access for imports, deploy technology-driven product tracking systems and expand gas infrastructure through the Midstream and Downstream Gas Infrastructure Fund (MDGIF).   NMDPRA also said the Anoh Gas Processing Plant is expected to contribute additional volumes to the domestic market from July 2026.    

1 day ago