As NMDPRA Plans Pricing Framework To Ease LPG Cost
The Federal Government has called on security agencies to support regulators in tackling hoarding, diversion and illegal storage of Liquefied Petroleum Gas, also known as cooking gas, following concerns over rising prices across the country.
The Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, made the call on Monday in Abuja at the end of a stakeholders’ meeting convened to address the rising cost of LPG.
In his closing remarks, Ekpo called on the Nigeria Police Force, the Economic and Financial Crimes Commission, and the Department of State Services to work with regulators to prevent practices that disrupt legitimate supply and worsen price pressure on consumers.
“I call on the security agencies — DG DSS, Chairman EFCC, and IG Nigerian Police Force — to support regulators in preventing diversion, hoarding, illegal storage, and disruption of legitimate supply movement along key LPG corridors,” he said.
The minister said the meeting had provided stakeholders an opportunity to share concerns and proposals, but stressed that the time had come to move from discussions to clear commitments, immediate action and accountable follow-through.
He charged the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, led by its Chief Executive Officer, Rabiu Abdullahi Umar, to take co-ownership of the intervention by working with the Nigeria LNG Limited, local LPG plants and major producers to increase local availability, improve coordination, reduce avoidable distribution costs and support stable pricing.
Ekpo also directed NMDPRA and other regulators to intensify market monitoring, publish regular market updates, investigate hoarding and diversion, and sanction operators found to be manipulating the market.
He urged producers and domestic suppliers to prioritise the Nigerian market, provide reliable supply forecasts and ensure that domestic allocations reach consumers without diversion or delay.
To depot owners and terminal operators, the minister directed them to publish clear loading schedules, report stock and evacuation levels, treat marketers fairly and improve truck turnaround time.
He also asked marketers and importers to bring in additional volumes where necessary, share arrival and discharge timelines, price responsibly and avoid withholding products for speculative gain.
Ekpo tasked transporters and logistics operators with increasing truck availability, clearing delivery bottlenecks, keeping haulage costs transparent and moving products quickly to areas of high demand.
Retailers and plant operators were also directed to display prices clearly, avoid arbitrary increases, maintain safe dispensing practices and report supply disruptions promptly.
The minister further called on consumer protection and public communication agencies to keep Nigerians informed, provide reporting channels, counter misinformation and promote safe LPG handling practices.
According to him, the responsibilities assigned to stakeholders must translate into visible improvements for Nigerians.
“I charge every stakeholder to deliver outcomes Nigerians can see and feel: more LPG in the market, faster movement to retail points, fewer artificial bottlenecks, stronger enforcement, clearer consumer information, and measurable relief in price pressure,” Ekpo said.
He assured Nigerians that the Federal Government would remain vigilant by monitoring developments, intervening where necessary, protecting consumers, supporting responsible investment and advancing a gas-powered economy that delivers cleaner cooking, energy security and improved quality of life.
Meanwhile, the Chief Executive Officer of NMDPRA, Rabiu Abdullahi Umar, disclosed that a gas tariff regulation was underway, adding that the government would unveil a proper pricing framework at its next meeting.
Umar said the Petroleum Industry Act empowers the Authority to ensure fair and cost-reflective pricing in the sector.
“We also intend to use technology. I heard the comment of technology in terms of tracking what is going on. Tariff regulation is in the pipeline and I believe by the time we have our next meeting we will be coming up with a proper framework in terms of pricing.
“One of the things the PIA empowers us to do is to make sure that price is relatively, I mean there’s a fair reflective pricing,” he said.
He disclosed that plans were underway to reduce domestic gas prices to levels last seen about two and a half years ago, when prices were around N800,000 per metric tonne.
Umar expressed surprise that LPG prices had continued to rise despite relative stability in inflation and exchange rates, noting that while the market is deregulated, the NMDPRA still has regulatory responsibilities.
He said the Authority was recommending measures to reverse cooking gas prices to where they were about 18 months ago.
“Well, as we are in most cases in the regulated market, it also doesn’t remove that responsibility from us, and at the same time, I want to use this opportunity to talk about the price, and we’re talking about recommending. We have not seen inflation rise so much. We haven’t seen the exchange rate to the dollar. It has been the most stable that we’ve seen in the last couple of years.
“So, without sounding like I’m giving a fiat, the first step is that we need to get these prices back to where they were a year, a year and a half ago.
“And I believe that it’s somewhere between 800 and 900 per metric ton. Between the two, I mean, it’s between the averages.
“900,000 naira per metric ton, which is 18 million at the upper limit and 16 million at the lower limit. I believe that Nigerians will be very, very happy,” Umar said.
The NMDPRA boss also disclosed that the Authority would invite NLNG to discuss challenges linked to vessel size and turnaround time, which he said had affected supply.
“Challenges with regards to LNG, NLNG in terms of the size of the vessel and the turnaround time have also been noted. We are inviting them to say we are going to have a meeting with NLNG to address some of the issues that have to do with that side of business,” he said.
