By Bassey Udo
Amid rising cost of Liquefied Petroleum Gas (LPG), popularly called cooking gas, the Federal Government on Monday directed the regulatory and security agencies to clampdown on perpetrators of hoarding, illegal diversion and storage of the commodity across the country.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who gave the directive during an emergency stakeholder meeting in Abuja, said this was part of coordinated measures to remove the bottlenecks in the distribution of the commodity to stabilise prices and ensure adequate supply across the country.
The directive was issued after the Minister listened to the views, concerns, and proposals by stakeholders during the meeting attended by senior representatives of key gas suppliers, marketers, distributors and consumer groups, including the Nigerian Gas Association (NGA), the Major Energy Marketers Association of Nigeria (MEMAN) and the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), among others.
Urging the NMDPRA to work closely with the Nigeria LNG, local LPG plants and major producers to increase local availability, improve coordination, reduce avoidable distribution costs, and support stable pricing, the Minister said other regulators must intensify monitoring, publish market updates, investigate hoarding and diversion, and sanction operators who manipulate the market.
He said gas producers and domestic suppliers must prioritize the Nigerian market, provide reliable supply forecasts, and ensure that domestic allocations reached consumers without diversion or delay.
Similarly, he said depot owners and terminal operators must publish clear loading schedules, report stock and evacuation levels, and improve truck turnaround time, while marketers and importers were directed to bring in additional volumes where required, share arrival and discharge deadlines, price responsibly, and avoid withholding products for speculative gain.
Assuring Nigerians that the Federal Government would remain vigilant, by monitoring developments, intervening where necessary, protecting consumers, Minister said responsible investments would continue to receive support to advance a gas-powered economy that delivers cleaner cooking gas, energy security, and improved quality of life.
Ekpo described the rising cost of cooking gas as a national concern with significant implications for households, small businesses and the country’s overall economic stability, assuring that the Federal Government remained committed to easing the burden on Nigerians.
He said the midstream sector regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has already been directed to strengthen its market oversight, develop a robust pricing framework to guide the market, and sanction operators engaged in practices that distort the market.
Urging the NMDPRA to collaborate with operatives of the Department of State Services (DSS), the Economic and Financial Crimes Commission (EFCC) and the Nigeria Police Force to support the enforcement of the clampdown order, the Minister said this would help in eliminating artificial scarcity and ensure the uninterrupted movement of cooking gas across the country.
“We have directed the NMDPRA to intensify monitoring, engage operators and work with security agencies to discourage hoarding, eliminate artificial scarcity, and strengthen transparency in distribution and pricing,” he said.
On supply, Ekpo said marketers had indicated their readiness to increase imports, adding that anticipated deliveries from new domestic facilities, including the Seplat Energy gas facility, were expected to boost supply in the coming weeks.
Besides, he said the government was exploring a local blending initiative involving the Nigeria LNG Limited, domestic producers and depot owners, aimed at improving supply of the commodity, reducing dependence on imports and supporting greater price stability.
He enjoined consumers to eschew panic, saying there is no cause for alarm, as the government was doing everything possible to ensure not only adequate domestic gas supply, but also to advance the Decade of Gas Initiative as a pathway to cleaner cooking, industrial growth and energy security.
In his address during the meeting, the Authority Chief Executive of the NMDPRA, Mr. Rabiu Umar, said the agency had commenced an enforcement campaign targeted at the pricing of the commodity as well as negative practice disrupting the supply-chain, warning that operators responsible for excessive price increases risk stiff sanctions.
He said the NMDPRA planned LPG supply volumes for June are expected to exceed estimated national demand, subject to timely delivery and efficient distribution.
Improved supply, he pointed out, must be matched by efficient distribution and responsible conduct, adding that bottlenecks as a result of hoarding, speculative storage, allocation inefficiencies, logistics constraints, and pricing distortions must not be allowed to undermine public confidence.
In the immediate term, he said marketers have indicated readiness to increase imports where necessary, while deliveries from new domestic facilities, including the Seplat Energy gas facility, should support supply 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.
Umar said that the NMDPRA would be much more aggressive in ensuring that no factor was allowed to keep prices at excessively high levels, assuring that a significant improvement was expected in supply and a reduction in prices before the end of next month.
