THE Liquefied Petroleum Gas Retailers Association of Nigeria has said retailers should not be blamed for the current hike and scarcity of Liquefied Petroleum Gas, also known as cooking gas.
Chairman of the Liquefied Petroleum Gas Retailers (LPGAR) under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Ayobami Olarinoye, made this known in a statement issued on Saturday.
The ICIR reported that in some parts of the country, a kilogram of cooking gas now sells for between N2,000 and ₦2,300, compared to about N1,200 earlier in the year.
Olarinoye blamed the rising cost and scarcity of LPG to supply challenges, dismissing claims that retailers are manipulating prices.
“The recent scarcity and spike in LPG prices have brought untold hardship to millions of Nigerian households and businesses. We understand this pain and feel compelled to clarify the role of retailers in this crisis,” Olarinoye said.
The chairman made the remark in response to comments by the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, who allegedly accused retailers of causing the price hike.
The ICIR reported that the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Bayo Ojulari, linked the recent surge in the price of cooking gas, to the nationwide strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Describing the allegation as “unfair and misleading,” Olarinoye clarified that retailers do not operate at the depot level and are neither importers nor primary off-takers.
“Our operations are limited to buying gas from plant owners and selling to end-users. Many of us travel to neighbouring states to purchase LPG at high costs due to supply shortages, which naturally affects retail prices,” he said.
The chairman said that while Dangote Refinery has maintained its gas prices, irregular supply has caused a demand-supply imbalance, leading to a continuous rise in prices which is driven by market forces.
“Some retailers have had to shut their outlets for days or weeks because they couldn’t access supply, resulting in huge business losses and operational strain.
“If plant owners increase prices, we have no choice but to adjust ours. We cannot be expected to sell at a loss,” he said.
He pointed out that although Dangote Refinery is a key player in the market, it currently does not have the capacity to meet Nigeria’s total LPG demand, which has grown from under one million metric tonnes to over 2.3 million metric tonnes per year.
“Dangote sells a 20-metric-tonne truckload of LPG at about N15.8 to N16 million, while off-takers offer the same quantity at N18.5 to N18.6 million.
He explained that off-takers, who are expected to complement Dangote’s supply through imports or by sourcing from the Nigeria Liquefied Natural Gas (NLNG), have reduced their operations because of uncompetitive pricing.
He added that the recent PENGASSAN strike further worsened an already fragile supply chain.
“Even after the strike was called off, supply has not stabilised. Some plant owners have paid for gas from Dangote but are yet to load due to long queues and limited availability,” he explained.
Olarinoye called on the government to close the price gap between Dangote and the off-takers to guarantee steady supply and market stability.
“We don’t know the exact landing costs from NLNG, but if off-takers were making enough profit, they would price competitively. As it stands, they’re reluctant to restock,” he said.
He emphasised that the ongoing crisis stems from systemic supply challenges rather than retailer manipulation and urged greater collaboration among stakeholders.
“Blaming retailers will not solve anything. We urge the government and industry players to work together to boost domestic production, encourage competitive pricing, and stabilise supply nationwide,” he said.
The situation has deepened economic hardship for many households, forcing some Nigerians to revert to alternative cooking methods such as charcoal and firewood.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.