The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has absolved its members of responsibility for the recent hike and scarcity of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, blaming the crisis on supply shortages.
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 and limited availability of LPG stem from distribution challenges, not 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 and feel compelled to clarify the role of retailers in this crisis,” Olarinoye said.
He was reacting to claims by the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who reportedly blamed retailers for the price surge — a claim Olarinoye described as “unfair and misleading.”
According to him, retailers neither import nor control depot operations but only buy from plant owners and sell 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 explained.
Olarinoye said although Dangote Refinery has not increased its gas price, irregular supply has created a demand-supply imbalance that continues to drive up costs. Some retailers, he noted, have been forced to shut down operations due to lack of supply.
He further stressed that price fluctuations are driven by market forces. “If plant owners increase prices, we have no choice but to adjust ours. We cannot be expected to sell at a loss,” he said.
Highlighting the broader market issues, Olarinoye explained that Dangote Refinery alone cannot meet Nigeria’s total LPG demand, which has grown from less than one million metric tonnes to over 2.3 million metric tonnes annually.
He added that other off-takers and importers have slowed operations due to uncompetitive pricing. “Dangote sells a 20-metric-tonne truckload of LPG at about ₦15.8 to ₦16 million, while off-takers offer the same at ₦18.5 to ₦18.6 million. Naturally, buyers opt for the cheaper option, reducing importation and worsening scarcity,” he said.
