FG orders crackdown on cooking gas hoarding as prices surge nationwide

The federal government has directed security agencies and regulators to clamp down on the hoarding, diversion and speculative storage of liquefied petroleum gas (LPG), popularly known as cooking gas, following a sharp rise in prices across Nigeria.

Speaking at an emergency stakeholders’ meeting in Abuja, Ekperikpe Ekpo, minister of state for petroleum resources (gas), said the government would collaborate with the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC), and the Nigeria Police Force to address practices driving up the cost of the product.

Ekpo instructed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market surveillance and work closely with security agencies to tackle artificial scarcity, discourage hoarding, and improve transparency in LPG distribution and pricing.

He noted that marketers had indicated readiness to increase imports where necessary, while additional domestic supply from facilities such as the Seplat gas plant is expected to improve availability in the coming weeks.

The minister also disclosed that the government is considering a local blending initiative involving Nigeria LNG Limited (NLNG), local producers, and operators of the Port Harcourt plant.

According to him, the initiative is aimed at bringing locally produced LPG closer to consumers, reducing dependence on imports and cutting logistics costs to stabilise prices.

Ekpo urged marketers and importers to bring in more volumes when required, disclose arrival and discharge timelines, and avoid withholding products for speculative purposes.

He also called on transporters and logistics operators to increase truck availability, clear supply bottlenecks, maintain transparency in haulage charges, and ensure timely delivery to high-demand areas.

Retailers, he added, must display prices openly, avoid arbitrary price increases, and report supply disruptions promptly.

Meanwhile, Rabiu Umar, chief executive officer of the NMDPRA, accused LPG wholesalers and retailers of charging prices far above regulatory benchmarks.

In a presentation at the meeting, Umar said cooking gas prices had climbed to as high as N2,100 per kilogram despite lower indicative prices set by the regulator.

According to the NMDPRA, consumers in the south-west currently pay between N1,600/kg and N2,100/kg, compared to the regulator’s benchmark range of N1,018/kg to N1,177/kg.

In the north-central region, prices range from N1,550/kg to N1,950/kg against an official benchmark of N1,066/kg to N1,224/kg, while consumers in the south-south pay between N1,400/kg and N2,000/kg despite an indicative range of N1,021/kg to N1,179/kg.

The authority attributed the disparity to non-cost-reflective pricing, profiteering by marketers, and distribution challenges.

It also warned that domestic LPG supply is being affected by exports. According to the regulator, Chevron Nigeria Limited produced 148,222 metric tonnes of LPG between January and May 2026 and exported the entire volume, representing 22.93 percent of national production during the period.

The NMDPRA said it plans to engage the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the ministry of petroleum resources to secure more LPG for the domestic market.

Data presented at the meeting showed that NLNG emerged as the largest LPG producer during the review period with 187,559 metric tonnes, accounting for 29.01 percent of national output, while the Dangote Petroleum Refinery produced 105,127 metric tonnes, representing 16.26 percent.