The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has said that gas retailers are not responsible for the current increase in the price and scarcity of Liquefied Petroleum Gas (LPG), also known as cooking gas.
In a statement issued on Saturday in Lagos, the Chairman of LPGAR under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr. Ayobami Olarinoye, said the rising cost of LPG is caused by supply challenges, not manipulation by retailers.
“The recent scarcity and price spike have brought hardship to many Nigerian homes and businesses. We understand this pain, but retailers should not be blamed,” Olarinoye said.
His statement followed claims by the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who accused retailers of contributing to the price surge. Olarinoye described the allegation as “unfair and misleading,” explaining that retailers do not operate depots or import gas.
“Our role is to buy gas from plant owners and sell to end-users. Many of us travel to other states to buy LPG at higher costs due to supply shortages, which naturally affects our retail prices,” he said.
He added that while the Dangote Refinery has not raised its gas prices, supply irregularities have created an imbalance between demand and availability. Some retailers, he said, have even shut down operations because they cannot access supply.
“The price hike is purely driven by market forces. When plant owners increase their prices, we must adjust ours. We cannot sell at a loss,” he stated.
Olarinoye also noted that although Dangote Refinery is a major supplier, it cannot meet Nigeria’s total LPG demand, which now exceeds 2.3 million metric tonnes annually. He said off-takers, who should complement local supply through imports or sourcing from the Nigeria Liquefied Natural Gas (NLNG), have reduced operations due to uncompetitive pricing.
“Dangote sells a 20-metric-tonne truckload of LPG for around N15.8 to N16 million, while off-takers sell at N18.5 to N18.6 million. Naturally, buyers go for the cheaper option, which discourages importation and worsens scarcity,” he explained.
He further said that the recent PENGASSAN strike disrupted an already fragile supply chain, and even though the strike is over, supply has yet to stabilize.
“Some plant owners who paid for gas at Dangote have not been able to load due to long queues and limited stock,” Olarinoye said.
He called on the government to bridge the price gap between Dangote and off-takers to stabilize the market and ensure steady supply.
“Blaming retailers will not solve the problem. The solution lies in boosting domestic production, encouraging fair competition, and ensuring consistent supply,” he emphasized.
Olarinoye assured Nigerians that the association is working with stakeholders to restore normalcy. “We share the public’s frustration and are working toward solutions. Until supply stabilizes, prices will continue to reflect demand,” he said.
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