The Federal Government has mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intensify Liquefied Petroleum Gas (LPG) depot monitoring to prevent product hoarding following its recent price surge.
The Minister of State for Petroleum Resources (Gas), Dr Ekperikpe Ekpo, gave the directive in a statement issued by his spokesperson, Louis Ibah, in Abuja on Monday.
Ekpo expressed concern over the situation, noting that the price of LPG has risen from N1,000/N1,100 per kg to as high as N1,500 and N1,700 per kg in some parts of the country.
He said that the recent price surge was primarily caused by two factors which involved the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) at the Dangote Refinery.
The minister said that the industrial action temporarily halted loading of LPG, known as cooking gas, at the refinery.
Ekpo added that the other factor was the ongoing maintenance activities at the Nigeria LNG train four facility, which reduced the volume of LPG available in the domestic market.
He said that the monitoring of the LPG depots across the country by the NMDPRA was to ensure compliance and prevent other sharp practices capable of worsening the current situation.
He appealed to Nigerians to remain calm and show understanding while assuring them that the situation was temporary and would normalise very soon.
“These disruptions led to a shortfall in supply and a consequent increase in prices due to demand and supply imbalance.”
The Minister, however, noted that operations at the Dangote Refinery have now resumed, with loading of the LPG to the domestic market already underway.
“Similarly, the Bonny River Terminal operated by Seplat Energy has commenced loading, while the Nigeria LNG is gradually restoring normal operations as maintenance nears completion.
“With these developments, supply to the domestic market is expected to stabilise by next week, leading to a gradual reduction in prices,” he said.
Ekpo also reiterated that the LPG market was deregulated.
He appealed to marketers, distributors, and all stakeholders along the LPG value chain to be patriotic in their dealings and desist from hoarding.
He also appealed to them to refrain from exploiting consumers for profit.
The minister assured that the Federal Government remained committed to ensuring sufficient and affordable gas supply to all households across the country. (NAN)
