Energy
NMDPRA Goes Hard on LPG Decanting, Sanctions Loom on Defaulters
Liquefied Petroleum Gas (LPG) retailers operating in Ogun State have been cautioned to desist from breaching safety regulations, through illegal decanting practices or be ready to face strict sanctions.
The caution was handed down by the Ogun State Coordinator, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Dr Akinyemi Atilola, during the authority’s first quarterly stakeholders’ engagement with LPG retailers in 2026.
Dr Atilola stressed that while retailers remain critical to the Federal Government’s gas expansion drive, safety must never be compromised.
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He said, “LPG retailers are key to achieving the Federal Government’s gas deepening agenda because they serve as the last-mile link to end users. However, this business must be conducted in strict adherence to safety standards and global best practices,” he said.
Speaking on the theme “Gas Deepening and Expansion: Hazards Associated with Gas Category D Business,” Atilola explained that LPG retailers fall under Category D operations, which are designed strictly for cylinder exchange commonly referred to as the drop-and-pick model.
He expressed concern that many operators have deviated from this model, engaging instead in decanting, the transfer of gas from one cylinder to another.
“What we observed, and what raised serious concern, is that some Category D operators are involved in decanting. This practice is highly unsafe and poses significant risks, not only to operators but also to customers, surrounding markets and the environment,” he warned.
According to him, decanting can result in overfilled cylinders, gas leaks, fire outbreaks and even explosions.
“Category D is not meant for decanting. It is specifically for a system where customers drop empty cylinders and pick up already-filled ones. Any deviation from this constitutes a safety breach,” he added.
Dr Atilola made it clear that the authority would no longer tolerate violations, noting that enforcement actions, including sealing of outlets would be intensified.
“We will not pretend not to see breaches. The authority will not hesitate to sanction erring operators. Already, about five outlets were sealed last year, and we will continue to shut down non-compliant facilities,” he stated.
He disclosed that Ogun State has over 600 LPG cylinder operators, emphasising the need for strict compliance across the board.
While reiterating the authority’s commitment to enforcing regulations, Atilola noted that NMDPRA is also mindful of the economic importance of the sector.
“We recognise that many people depend on this business for their livelihood. We are not out to take away their means of income, but we cannot allow unsafe practices. Our goal is to educate and guide operators toward safe and compliant operations,” he said.
He added that operators willing to comply with established guidelines would be duly licensed.
“If they follow the rules, we are ready to license them. But unsafe operations will not earn our approval,” he stressed.
The NMDPRA boss also raised concerns over the indiscriminate siting of LPG businesses in residential areas, warning that such practices would not be tolerated.
He outlined strict requirements for siting gas facilities, including minimum space, ventilation standards, and storage limits.
“There must be at least a three-by-four metre space, proper ventilation, and operators must not store more than 500 kilograms of gas. Most importantly, such facilities must not be located within residential buildings,” he said.
He condemned unsafe storage practices such as keeping gas cylinders in living rooms or near sensitive locations.
“Storing gas under beds, inside homes, or near schools and hospitals is strictly prohibited. Such practices endanger lives and will not be approved,” he warned.
In their remarks, Chairman of the LPG Retailers branch of NUPENG in Ogun State, Mr Ogunkoya Abiodun, alongside the Chairman of the Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Engr Raifu Oyedele, commended NMDPRA for its support toward the growth of the gas sector.
They, however, called for increased collaboration, particularly in training and continuous sensitisation of operators.
A 10-point communique issued at the end of the engagement emphasised collective responsibility for safety in the sector.
The stakeholders unanimously agreed that any operator found engaging in unsafe practices, especially decanting, should face appropriate sanctions.
The engagement forms part of NMDPRA’s ongoing efforts to promote safe LPG usage while advancing Nigeria’s gas expansion agenda under the Federal Government’s “Decade of Gas” initiative.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has credited the NLNG/SEPNU with leading the rise in Nigeria’s domestic cooking gas supply, which peaked at 5,332 tonnes per day in July 2026.
The NMDPRA’s July 2026 midstream and downstream statistics showed that total liquefied petroleum gas supply increased from 5,100 tonnes per day in June to 5,332 tonnes per day in July.
The NLNG/SEPNU supplied 2,031 tonnes per day through vessels, representing about 38 per cent of the total supply during the month.
Other processing plants supplied 1,513 tonnes per day through trucks, while the Dangote Petroleum Refinery and Petrochemicals (DPRP) supplied 829 tonnes per day.
Imports accounted for 959 tonnes per day.
The figures showed that domestic sources supplied 4,373 tonnes per day, representing about 82 percent of the total LPG supply in July, while imports accounted for the remaining 18 percent.
The July supply level was the highest recorded in the 13-month period covered by the NMDPRA data.
LPG supply stood at 4,500 tonnes per day in July 2025 before rising to 5,000 tonnes in August and declining to 3,900 tonnes in September last year.
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It subsequently increased to 4,500 tonnes in October, 5,000 tonnes in November and 5,200 tonnes in December.
In January 2026, supply stood at 5,100 tonnes per day before falling to 4,700 tonnes in February and March, 4,500 tonnes in April and 4,100 tonnes in May.
The supply level then rose to 5,100 tonnes per day in June before reaching 5,332 tonnes in July.
The latest figures indicate a continued strengthening of domestic LPG supply, with local sources now accounting for the bulk of the cooking gas available in the country.
However, our correspondent reports that LPG prices have yet to fall below the N1,000 per kilogramme level after the sudden surge in May.
Though prices have plunged from a high of N2,400/kg to between N1,300 and N1,600, depending on location.
The NLNG recently accused some marketers of contributing to the sharp rise in the price of cooking gas by buying liquefied petroleum gas from the company at prices between N800 and N900 per kilogramme and selling it for as much as N2,400/kg in the retail market.
The Managing Director and Chief Executive Officer of NLNG, Adeleye Falade, disclosed this during a recent media briefing in Lagos, where he attributed the price spike to supply shortages, artificial scarcity and distortions in the distribution chain rather than the company’s pricing.
According to him, when the retail price of LPG climbed to N2,400/kg, the NLNG was selling the product to buyers at between N800 and N900/kg. He said the price was supposed to be in the range of N1,000 to N1,200, going by the recommendation of the NMDPRA.
“When the product was being sold at N2,400 in the market, guess how much they (marketers) were lifting it from us? It was between N800 and N900 per kg. And NMDPRA recommended that by the time you put in transportation costs and all other things, it shouldn’t be selling more than N1,000, N1,100 or N1,200. So, there’s also some distortion that happened on the sales side, which I know the regulators are working on right now to get control of it,” he stated.
On Tuesday, renewed escalation of the conflict between the United States and Iran pressured oil prices to over $94/barrel.
Current hostilities which witnessed American air strikes on Iranian targets and triggered global concerns of disruption to crude supplies through the Strait of Hormuz.
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Brent crude rose $4.06, or 4.49 percent, to $94.55 a barrel, while West Texas Intermediate gained $4.44, or 5.18 percent, to $90.20 a barrel. Murban crude also surged by $7.19, or 7.30 percent, to $105.60 a barrel, according to Oilprice.com.
The rally followed the United States’ fresh strikes on Iran, with Washington saying its forces had targeted the Islamic Revolutionary Guard Corps IRGC).
“Today (Tuesday) at 12 p.m. ET (1600 GMT), US forces began striking Islamic Revolutionary Guard Corps targets in Iran.
“The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region,” the US Central Command said.
The latest attacks have raised fresh concerns about the security around the Strait of Hormuz, a critical route for global oil supplies. Oil prices had already risen following the exchange of attacks between the two countries over the weekend, while reports of attacks on tankers further fuelled supply concerns.
Reuters reported that two supertankers carrying Saudi oil were struck by unknown projectiles within minutes of each other while travelling outbound through the Strait of Hormuz late on Monday, according to shipping intelligence and tracking firms.
Following the reports, Brent crude futures, which were already up about two percent, jumped by almost another two percent.
Iran has also threatened to prevent oil exports from the Gulf if the US continues its attacks. “If the enemy wants us not to export oil from the Persian Gulf, no one will be able to export oil,” Iranian Parliament Speaker Mohammad Baqer Qalibaf was quoted as saying by Iranian media.
The renewed confrontation has heightened fears that the six-month-old conflict could escalate into a wider war and threaten crude supplies from the oil-rich Gulf region.
The conflict had previously shifted towards sanctions, blockades and economic pressure, but the latest exchange of attacks has raised concerns about a return to sustained military confrontation.
US President Donald Trump warned Iran that it would face a stronger response if it retaliated against the latest American strikes.The US strikes came after Iranian missiles were fired at two US air bases in Jordan in response to an earlier American attack on Iran’s Larak Island.
The latest escalation also coincided with plans by Washington to impose additional economic sanctions on Tehran. US Treasury Secretary Scott Bessent said bank sanctions against Iran were likely to be announced this week and next, while warning that Washington would also target other entities doing business with the Islamic Revolutionary Guard Corps.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating across the country.
The chief executive, NUPRC, Oritsemeyiwa Eyesan, disclosed this while addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.
Under the Petroleum Industry Act (PIA), oil and gas companies, referred to as settlors, are required to contribute three percent of their Operating Expenditure from the preceding financial year into a Host Communities Trust Fund for the benefit of communities where they operate.
Eyesan said the NUPRC had been enforcing the provisions of the Act, particularly those relating to host communities and the obligations of operating companies, and had put in place regulations and procedures to streamline the process.
“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” she said.
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She said the trusts had funded the construction of schools, hospitals and other infrastructure, and had contributed significantly to peace and stability in previously volatile communities, which in turn had led to an increase in oil production.
Eyesan, however, admitted that some of the HCDTs had become subjects of litigation over disagreements on the constitution of their Boards of Trustees. She said the Commission had been working to ensure the trusts run smoothly, and that its Alternative Dispute Resolution Centre had played a key role in addressing some of the grievances.
She said that while the RMAFC’s interest in host communities was appreciated, oversight of how the funds are managed remained the exclusive preserve of the NUPRC.
The NUPRC boss also promised to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.
Responding, the chairman of the RMAFC, Dr Mohammed Bello Shehu, commended the NUPRC for overseeing reforms in the oil and gas sector that had contributed to growth in production.
Shehu said the RMAFC regards the upstream oil and gas sector as important, given that it accounts for a large share of revenue accruing to the Federation Account.
He thanked the NUPRC leadership for honouring the RMAFC’s invitation and called for stronger collaboration between the two institutions in the interest of the country.
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