The federal government has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to monitor gas depots to prevent hoarding and other sharp practices.
Ekperikpe Ekpo, the minister of state for petroleum resources (gas), issued the directive in a statement on Monday.
The directive follows the shortage of supply of liquefied petroleum gas (LPG), also known as cooking gas, leading to a sharp rise in prices.
The price of cooking gas recently surged from about N1,000-N1,100 per kilogram (kg) to as high as N1,700 in some parts of the country, according to the statement.
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The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) had said some retailers were exploiting the current supply shortage to hike the price of the commodity.
Intervening in the situation, Ekpo said the recent spike was triggered by temporary disruptions in domestic supply caused by an industrial action at the Dangote refinery and maintenance work at the Nigeria LNG (NLNG) Train 4 facility.
“These disruptions created a shortfall in supply and a consequent increase in prices,” he said.
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“However, the situation is temporary and will normalise very soon.”
Ekpa said loading operations have resumed at the Dangote Refinery and Seplat’s Bonny river terminal, noting that the NLNG is gradually restoring output as maintenance winds down.
“With these developments, supply to the domestic market is expected to stabilise by next week, leading to a gradual reduction in prices,” he added.
Ekpo reminded stakeholders that the LPG market is deregulated but urged marketers and distributors to be “patriotic in their dealings” and refrain from profiteering.
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He reaffirmed the government’s commitment to ensuring sufficient and affordable gas supply to households across the country.
