FG Cracks Down on Cooking Gas Marketers Over Price Exploitation

Federal Government Orders Crackdown on Cooking Gas Marketers Amid Price Surge

The Federal Government has directed an immediate clampdown on marketers exploiting consumers following the recent sharp increase in the price of cooking gas. Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, issued the order targeting those hoarding or engaging in unfair practices.

This development comes as cooking gas prices skyrocketed from an average of N1,000 per kilogram to approximately N2,000 in various locations. The minister’s spokesman, Louis Ibah, confirmed the directive in a Monday statement.

Causes of the Cooking Gas Crisis

Minister Ekpo identified two primary factors behind the cooking gas price surge. The recent strike by PENGASSAN at the Dangote refinery temporarily halted LPG loading operations. Simultaneously, ongoing maintenance at the Nigeria LNG Train 4 facility reduced gas volumes in the domestic market.

As detailed in the complete version, there are several key factors to consider.

These disruptions created a significant supply shortfall, leading to increased prices due to demand-supply imbalance. The situation persisted even after the suspension of the industrial action nearly two weeks ago.

Government Assurance and Market Recovery

Ekpo appealed for calm from Nigerians, assuring that the situation is temporary and should normalize by next week. He confirmed that operations have resumed at the Dangote refinery, with cooking gas loading to the domestic market already underway.

The Bonny River Terminal operated by Seplat Energy has also commenced loading activities. Nigeria LNG is gradually restoring normal operations as maintenance work nears completion. With these improvements, domestic market supply is expected to stabilize soon.

Regulatory Monitoring Intensified

The minister has mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority to intensify monitoring of LPG depots nationwide. This enhanced surveillance aims to prevent product hoarding and other practices that could worsen the current cooking gas situation.

Ekpo reiterated that the LPG market remains deregulated but urged marketers and distributors to act patriotically. He specifically appealed to stakeholders across the cooking gas value chain to desist from hoarding and refrain from exploiting consumers.

The Federal Government reaffirmed its commitment to ensuring sufficient and affordable cooking gas supply to all households nationwide. Consumers can expect gradual price reductions as market conditions improve in the coming days.