The federal government has convened an emergency stakeholders’ meeting over rising cooking gas prices, pledging that the Department of State Services, the Economic and Financial Crimes Commission and the Nigeria Police Force will help tackle product diversion, hoarding and speculative storage blamed for soaring costs.
At the Abuja meeting, Minister of State for Petroleum Resources (Gas) Ekperikpe Ekpo said the government remained committed to moderate prices and cleaner energy access, stressing that Nigeria’s gas must first serve domestic consumers.
The intervention came as the Nigerian Midstream and Downstream Petroleum Regulatory Authority said it was working to mitigate a projected supply shortfall of about 165,000 metric tons in the third quarter of 2026, while warning operators against violating domestic supply obligations.
Ekpo said improved supply alone would not solve the problem without efficient distribution and responsible conduct, identifying hoarding, allocation inefficiencies, logistics constraints, speculative storage and pricing distortions as major obstacles. He directed the NMDPRA to intensify market surveillance and collaborate with security agencies to eliminate artificial scarcity.
In the immediate term, marketers indicated readiness to increase imports, while deliveries from new domestic facilities, including the Seplat gas plant, are expected to ease supply. The minister also said a local blending initiative with Nigeria LNG Limited, local producers and the Port Harcourt plant operator was being explored to reduce import pressure and stabilize pricing.
He directed producers and suppliers to prioritize the Nigerian market, instructed depot owners to publish clear loading schedules, and urged marketers to avoid withholding product for speculative gain.
Representing NMDPRA chief executive Rabiu Umar, Executive Director Ogbugo Ukoha said the authority’s indicative pricing model showed prices should not exceed N1,018 to N1,244 per kilogram. He attributed the supply challenges to continued exports of local LPG, global disruptions linked to Middle East tensions, inadequate imports and non cost reflective pricing.
Although average daily supply rose to 5,040 metric tons in June from 4,262 in May, improving sufficiency from 11 to 22 days, the regulator projected a 165,000 metric ton gap in the third quarter without urgent action. It said it had begun auditing off takers, intensified enforcement and planned technology driven product tracking to curb diversion.
The Nigerian Association of Liquefied Petroleum Gas Marketers blamed profiteering by middlemen rather than supply shortages. “The truth of the case is this. We do not have a supply challenge, but we have profiteering issues across the board,” former chairman Oladapo Olatunbosun said.
Permanent Secretary Patience Oyekunle said the meeting aimed to improve affordability, ensure supply stability and reduce emissions. Other organizations present included the Independent Petroleum Producers Group, the Major Energy Marketers Association of Nigeria, Seplat Energy and Chevron.
