The Federal Government has ordered a clampdown on marketers engaged in hoarding or diversion of Liquefied Petroleum Gas (LPG), also known as cooking gas following the recent surge in the price.
The government directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other regulators to intensify market surveillance, investigate product hoarding and diversion, and sanction operators found manipulating the market.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, gave the directive at an emergency stakeholders’ engagement on rising LPG prices, following deliberations with regulators, producers, marketers and other industry players.
The authority identified several factors responsible for the current rise in LPG prices, including global supply disruptions and price volatility arising from the Israel-Iran conflict.
It also linked the situation to shortfalls in domestic supply created by incomplete domestication of local LPG production, low import volumes, non-cost-reflective pricing by some wholesalers and retailers, inadequate distribution infrastructure, and logistics challenges.
