Cooking gas scarcity, price hike not caused by retailers — LPGAR

The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has refuted claims that retailers are responsible for the current scarcity and rising cost of cooking gas across the country.

In a statement issued on Saturday, Ayobami Olarinoye, chairman of LPGAR under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), said the ongoing crisis stems from supply challenges rather than price manipulation by retailers.

“The recent scarcity and spike in LPG prices have brought untold hardship to millions of Nigerian households and businesses. We understand this pain but must clarify that retailers are not the cause,” Olarinoye said.

He was responding to comments by the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who had reportedly blamed retailers for the price surge.

Describing the allegation as “unfair and misleading,” Olarinoye explained that retailers neither import gas nor operate at depot level. “Our operations are limited to buying from plant owners and selling to end users. Many of us travel to neighbouring states to get supply at high cost, which naturally affects retail prices,” he said.

According to him, although Dangote Refinery has maintained stable gas prices, irregular supply has created a demand-supply imbalance that continues to drive up costs.

“Some retailers have shut down their outlets because they cannot access supply, resulting in huge business losses,” he noted, adding that the price increase is driven purely by market forces.

“If plant owners raise prices, we have no choice but to adjust ours. We cannot sell at a loss,” he said.

Olarinoye further explained that while Dangote is a major player in the domestic gas market, it does not yet have the capacity to meet Nigeria’s total demand, which has grown from under one million to over 2.3 million metric tonnes annually.

He noted that off-takers, who are supposed to complement local supply by importing or sourcing from the Nigeria Liquefied Natural Gas (NLNG), have slowed operations because of uncompetitive pricing.

“Dangote sells a 20-metric-tonne truckload for about ₦15.8–₦16 million, while off-takers offer the same quantity at ₦18.5–₦18.6 million.

“Naturally, buyers choose the cheaper option, which discourages importation and worsens scarcity,” he said.

He also mentioned that the recent PENGASSAN strike further disrupted supply, and even after its suspension, “some plant owners who paid for gas from Dangote are still waiting to load due to long queues and limited availability.”

Olarinoye called on the federal government to bridge the price gap between Dangote and off-takers to stabilise the market.

“We urge the government and industry stakeholders to boost domestic production, encourage competitive pricing, and ensure consistent supply nationwide,” he said.

The LPGAR chairman assured consumers that retailers remain committed to restoring normalcy.

“We share the public’s frustration and are working toward a sustainable solution.

“Until supply stabilises, prices will continue to reflect market realities,” he added.