By Nchetachi Chukwuajah
The Federal Government has concluded plans to go after marketers responsible for the sharp increase in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, disclosed this in a statement by his spokesman, Louis Ibah, on Monday, October 13.
Ekpo expressed concern over the hike in the prices of cooking gas, which increased recently from an average of N1,000 per kilogramme to about N2,000/kg in some locations following the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) during the impasse between the union and the Dangote Refinery.
The minister appealed for calm and understanding from Nigerians as the price of cooking gas remained high two weeks after the suspension of the strike, assuring them that the situation was temporary and would return to normal by next week.
Ekpo added that the hike in prices was caused by the industrial action by PENGASSAN at the Dangote Refinery and the ongoing maintenance activities at the Nigeria LNG Train 4 facility.
The minister explained that the strike by PENGASSAN at the Dangote Refinery temporarily halted LPG loading, while the maintenance work at NLNG reduced the volume of gas available in the domestic market.
He said these dual disruptions led to a shortfall in supply and a consequent rise in prices due to a demand–supply imbalance.
Ekpo, however, said the situation was improving as operations had resumed at the Dangote Refinery, with the loading of LPG to 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.
The minister said: “With these developments, supply to the domestic market is expected to stabilise by next week, leading to a gradual reduction in prices.”
Ekpo reiterated that the LPG market remained deregulated and urged marketers, distributors, and other stakeholders along the gas value chain to desist from hoarding and refrain from exploiting consumers for profit.
“Ekpo also reiterates that the LPG market is deregulated and appeals to marketers, distributors, and all stakeholders along the LPG value chain to be patriotic in their dealings, desist from hoarding, and refrain from exploiting consumers for profit.
“To ensure compliance, the minister has mandated the Nigerian Midstream and Downstream Petroleum Regulatory Authority to intensify monitoring of LPG depots across the country to prevent product hoarding and other sharp practices capable of worsening the current situation,” the statement added.
