The Federal Government has directed security agencies and industry regulators to launch an aggressive crackdown on hoarding, illegal diversion, and speculative storage of liquefied petroleum gas (LPG), commonly known as cooking gas, following a sharp increase in prices across the country.
Key Highlights:
- FG orders security agencies to tackle hoarding and artificial scarcity of liquefied petroleum gas.
- DSS, EFCC, and Police directed to support enforcement efforts.
- NMDPRA tasked with intensifying market surveillance nationwide.
- Government exploring local LPG blending initiative to stabilize prices.
- Marketers accused of charging prices far above regulatory benchmarks.
- Chevron exported 100 percent of its LPG production between January and May 2026.
Speaking at an emergency stakeholders’ meeting in Abuja, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC), and the Nigeria Police Force would collaborate to curb practices contributing to rising LPG prices.
Ekpo directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to strengthen market surveillance and work closely with security agencies to eliminate artificial scarcity, discourage hoarding, and improve transparency in the distribution and pricing of liquefied petroleum gas.
According to the minister, marketers have expressed readiness to increase imports where necessary, while additional domestic supply from new gas facilities, including the Seplat gas plant, is expected to boost market 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,” Ekpo said.
He urged marketers and importers to bring in additional product volumes where required, disclose import and discharge schedules, avoid speculative storage, and ensure responsible pricing.
The minister also called on transporters and logistics operators to increase truck availability, address delivery bottlenecks, maintain transparency in haulage charges, and ensure the timely movement of products to high-demand areas.
Retailers were further directed to display prices openly, avoid arbitrary increases, and promptly report supply disruptions to relevant authorities.
In a presentation at the meeting, the Chief Executive Officer of NMDPRA, Rabiu Umar, disclosed that wholesalers and retailers have been charging non-cost-reflective prices, pushing cooking gas prices to as high as N2,100 per kilogram despite significantly lower benchmark prices issued by the regulator.
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According to NMDPRA data, consumers in several regions are paying far above official pricing indicators due to profiteering and distribution challenges.
In the South-West, liquefied petroleum gas currently sells between N1,600 and N2,100 per kilogram compared to the regulator’s benchmark range of N1,018 to N1,177 per kilogram.
Similarly, consumers in the North-Central region are paying between N1,550 and N1,950 per kilogram against an indicative price range of N1,066 to N1,224 per kilogram.
In the South-South, LPG prices range from N1,400 to N2,000 per kilogram, significantly above the official benchmark of N1,021 to N1,179 per kilogram.
The regulator attributed the disparity to non-cost-reflective pricing practices, distribution inefficiencies, and supply constraints caused by increasing exports.
NMDPRA revealed that 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 Nigeria’s total production during the period.
The agency said it would engage the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Ministry of Petroleum Resources to secure more domestic supply for Nigerian consumers.
According to the production report, Nigeria LNG Limited (NLNG) emerged as the largest producer during the review period, accounting for 187,559 metric tonnes or 29.01 percent of total output, while the Dangote Petroleum Refinery produced 105,127 metric tonnes, representing 16.26 percent of national LPG production.
Industry stakeholders believe that increased domestic supply, stronger regulatory enforcement, and improved distribution networks will be critical to stabilizing liquefied petroleum gas prices and ensuring affordability for millions of Nigerian households.
