Nigeria: Stop Exploiting LPG Users — Ekperikpe Ekpo Tells Dealers

Nigeria’s Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has expressed outrage over the exploitation of consumers by some marketers of Liquefied Petroleum Gas (LPG), popularly known as cooking gas. The marketers are allegedly hoarding the product, creating artificial shortages that have led to long queues and inflated prices.

For some time now, there have been long queues at LPG refilling outlets across several parts of the country. This has caused prices to surge from an average of ₦1,000 per kilogramme to about ₦2,000/kg in some locations.

The situation followed the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over a dispute with the Dangote Refinery.

Almost two weeks after the strike was suspended, the price of cooking gas has continued to rise.

In a statement issued through his spokesman, Louis Ibah, on Monday, Minister Ekperikpe Ekpo expressed deep concern about the situation and appealed for calm and understanding from Nigerians, assuring them that the situation was temporary and would normalise by next week.

According to him, the sharp increase in prices was caused by two main factors — the industrial action by PENGASSAN at the Dangote Refinery and ongoing maintenance activities at the Nigeria LNG Train 4 facility.

The Minister explained that the PENGASSAN strike at the Dangote Refinery temporarily halted LPG loading, while maintenance work at NLNG reduced the volume of gas available in the domestic market. These disruptions, he said, led to a shortfall in supply and a consequent rise in prices due to a demand–supply imbalance.

Ekpo, however, noted that the situation was improving as operations had resumed at the Dangote Refinery, with the loading of LPG for the domestic market already underway.

He added that the Bonny River Terminal, operated by Seplat Energy, had also commenced loading, while NLNG was gradually restoring normal operations as its maintenance neared completion.

“With these developments, supply to the domestic market is expected to stabilise by next week, leading to a gradual reduction in prices,” the minister said.

Ekpo reiterated that the LPG market remains deregulated and urged marketers, distributors, and other stakeholders along the gas value chain to be patriotic in their dealings. He appealed to them to desist from hoarding and refrain from exploiting consumers for profit.

“The LPG market is deregulated, and I appeal to marketers, distributors, and all stakeholders along the value chain to be patriotic in their dealings, desist from hoarding, and refrain from exploiting consumers for profit,” Ekpo stated.

To ensure compliance, the minister has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify monitoring of LPG depots across the country to prevent product hoarding and other sharp practices capable of worsening the current situation.

Source: https://energynewsafrica.com