LPG Retailers Deny Blame for Cooking Gas Price Surge, Cite Supply Shortages and Market Imbalance

The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has refuted claims that retailers are responsible for the current hike and scarcity of Liquefied Petroleum Gas (LPG), popularly known as cooking gas.

In a statement issued on Saturday in Lagos, the association’s chairman, Mr. Ayobami Olarinoye, said the soaring prices and limited availability of LPG are the result of supply constraints, not manipulation by retailers.

“The recent scarcity and surge in LPG prices have inflicted hardship on millions of households and businesses across Nigeria. We understand the pain but must clarify that retailers are not to blame,” Olarinoye said.

He was responding to remarks made by the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who allegedly accused retailers of fueling the price increase.

Describing the accusation as “unfair and misleading,” Olarinoye explained that retailers neither import nor lift gas from depots, but simply purchase from plant owners and sell to consumers.

“Most retailers now travel to other states to source LPG at high prices due to supply shortages. Naturally, this affects our retail prices,” he noted.

According to him, although Dangote Refinery has not raised its gas price, irregular supply has created a demand-supply imbalance that continues to push prices upward. Some retailers, he added, have even shut down operations temporarily due to lack of access to supply.

He stressed that the price surge is purely driven by market forces. “If plant owners increase prices, we must adjust ours. We can’t sell at a loss,” he said.

Olarinoye further explained that while Dangote is a significant player, it currently lacks the capacity to meet Nigeria’s annual demand, which has grown from below one million metric tonnes to over 2.3 million metric tonnes.

“Off-takers, who should complement Dangote by importing or sourcing from the NLNG, have slowed operations due to uncompetitive pricing,” he said. “Dangote sells a 20-metric-tonne truckload for about ₦15.8–₦16 million, while off-takers offer the same for ₦18.5–₦18.6 million. Buyers naturally prefer the cheaper option, worsening import decline and scarcity.”

He added that the recent PENGASSAN strike worsened the fragile supply chain, as some plant owners who had paid for gas from Dangote are still waiting to load due to long queues and limited product availability.

Olarinoye urged the government to bridge the price gap between Dangote and other suppliers to ensure stable supply and fair pricing. “If off-takers were making reasonable profit margins, they would price competitively. But as it stands, many are reluctant to restock,” he said.

He emphasized that the ongoing crisis is rooted in systemic supply problems, not retailer exploitation, and called for collective action among industry stakeholders to boost domestic production and stabilize prices.

“Blaming retailers won’t fix the problem,” Olarinoye warned. “We need collaboration between the government and players across the value chain to restore market stability.”

He assured consumers that LPGAR remains committed to restoring normalcy. “We share the public’s frustration and are working toward lasting solutions. Until the supply situation improves, prices will continue to reflect market realities,” he concluded.

Across several parts of the country, the price of cooking gas has surged to ₦1,800–₦2,000 per kilogram, up from about ₦1,200 earlier in the year, deepening economic hardship and forcing many Nigerians to resort to charcoal and firewood as cheaper alternatives.