Strike caused temporary LPG distribution delays
The recent spike in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has been attributed to a temporary disruption caused by an industrial strike. This clarification came from the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mr. Bayo Ojulari, during a media interaction in Abuja on Sunday.
Ojulari addressed journalists shortly after a visit to President Bola Ahmed Tinubu, where he offered assurances about the stability of petroleum product supplies, including LPG. He explained that the disruption was caused by a strike action led by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which delayed product loading and distribution across the country for several days.
“The increase you saw was relatively artificial because, during the strike, movement and loading were delayed for about two to three days,” Ojulari said. “That delay naturally impacted distribution, and as things gradually return to normal, it takes a little time for the system to stabilise.”
Marketers took advantage of supply gap
Beyond the logistical delays, Ojulari acknowledged that some gas marketers and retailers contributed to the price surge by taking advantage of the temporary supply disruption. He noted that individuals and businesses holding existing LPG stock raised their prices during the period of scarcity.
“As you know, in Nigeria, people seize opportunities. With that delay, some of those who already had stock decided to raise prices,” he explained.
This pricing behavior, he noted, is not uncommon during disruptions in the energy supply chain. Market dynamics in such scenarios often lead to short-term inflationary pressures, especially in the absence of real-time price regulation mechanisms.
Price stability expected to return soon
Despite the recent volatility, the NNPC boss gave a firm assurance that the hike is temporary. With the strike now over and supply chains gradually being restored, Ojulari expressed confidence that market forces will correct the inflated prices in the coming days.
“My expectation is that now that things are back to normal, prices should return to what they were before the strike,” he stated.
He emphasized that as LPG distribution returns to optimal levels, consumers can expect prices to decline accordingly.
NNPC working to ensure long-term stability
Ojulari reaffirmed NNPC’s commitment to maintaining a steady and reliable supply of petroleum products across Nigeria, including cooking gas. He highlighted that the company is working closely with industry stakeholders to prevent future disruptions and enhance supply chain resilience.
“We are implementing measures to ensure that such disruptions are avoided in the future. The aim is to provide stability not just in supply but also in pricing,” he noted.
The NNPC chief also hinted at ongoing strategic initiatives aimed at boosting local production capacity and reducing dependency on imported LPG. These efforts, he said, will contribute to long-term energy security and price stability for Nigerian households and businesses.
Background on PENGASSAN’s industrial action
The strike that triggered the LPG supply disruption was part of a broader protest by PENGASSAN members over workplace safety and welfare issues in the oil and gas sector. Although the strike was resolved within a few days, its impact was quickly felt in the energy market, particularly in LPG distribution.
The brief pause in operations led to queues at gas plants and retailers, especially in urban areas. Prices rose significantly in several parts of the country, with some consumers reporting increases of up to 30% in less than a week.
Consumers urged to remain calm
Industry stakeholders are urging consumers to remain calm and avoid panic buying. With the resumption of loading and transportation activities, experts predict a downward correction in LPG prices over the next week.
Ojulari encouraged Nigerians to trust in the system, noting that temporary setbacks are being addressed through collaboration between government agencies, marketers, and unions.
“The most important thing is that the system is stabilizing, and normalcy is returning,” he concluded.
