Cooking Gas Retailers Explain Hike in Prices as Dealers Release New Rates Nationwide
- Cooking gas retailers have absolved themselves from the current scarcity and hike in prices nationwide
- The retailers reacted to accusations by major dealers that the current hike was due to profiteering and hoarding
- Nigerians have been battling cooking gas scarcity for the last three weeks, with prices skyrocketing 80% and retailers selling at N3,000/kg
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
Nigeria’s cooking gas crisis has reached a breaking point as retailers reject accusations of profiteering, insisting that supply shortages, not greed, are behind the 80% surge in prices now hitting ₦3,600 per kilogram nationwide.
The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) said in Lagos that retailers were not responsible for the ongoing price surge and scarcity of Liquefied Petroleum Gas (LPG).
Retailers deny manipulation claims
LPGAR Chairman, Ayobami Olarinoye, described as “unfair and misleading” the claims by the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) that retailers were inflating prices.
“Retailers do not control the supply chain,” he explained. “We buy from plant owners and sell to end-users. Many of us travel to other states to source gas at higher costs because of shortages, and this naturally affects the final price.”
He said the situation had caused significant losses for small businesses, with many retailers temporarily shutting down outlets due to a lack of supply.
Supply gaps and Dangote’s limited capacity
Olarinoye noted that Dangote Refinery, though a major domestic supplier, had not increased its gas prices.
However, its current production could not meet national demand, which has risen sharply from under one million metric tonnes to more than 2.3 million metric tonnes annually.
According to a Vanguard report, he explained that off-takers—companies that typically import LPG or source from the Nigerian Liquefied Natural Gas (NLNG)—had slowed down operations due to pricing challenges.
“Dangote sells a 20-metric-tonne truckload at about ₦15.8 to ₦16 million, while off-takers charge between ₦18.5 and ₦18.6 million. Naturally, buyers prefer the cheaper source, reducing importation and worsening scarcity,” he said.
The recent PENGASSAN strike further disrupted the fragile supply chain. “Even after the strike was called off, some plants are still unable to load gas due to long queues and limited availability,” he added.
NNPC reacts, promises relief measures
Responding to mounting public concern, the Nigerian National Petroleum Company Limited (NNPC Ltd.) acknowledged the challenges in gas supply but assured Nigerians that measures were being taken to stabilise the market.
In a statement, NNPC said it was working with NLNG, Dangote Refinery, and other key stakeholders to boost domestic supply and close logistics gaps. The company urged patience as it ramps up gas deliveries across its depots nationwide.
The Group Managing Director of the NNPC, Bayo Ojulari, assured that normalcy will return following the PENGASSAN strike suspension.
A prior report by Legit.ng disclosed that the 650,000 bpd-capacity Dangote Refinery slashed cooking gas prices.
However, the effect is yet to reflect in the market as scarcity and price hikes continue
Retailers call for government intervention
Olarinoye urged the government to bridge the pricing gap between Dangote and off-takers to encourage fair competition and steady supply.
“If off-takers make reasonable profit margins, they’ll restock more frequently, easing the pressure on consumers,” he said.
He concluded by reaffirming the union’s commitment to normalising the market:
“We share the public’s frustration. But the root cause is systemic — not retail greed. Until supply catches up with demand, prices will remain volatile.”
Dangote’s gas price slash shakes the market
Legit.ng earlier reported that major dealers and depot owners have released new prices for liquefied natural gas, also known as cooking gas, nationwide.
The new development came barely 24 hours after the 650,000 Dangote Refinery slashed its LPG prices to N760 per kilogram.
Nigerians have been hit with cooking gas scarcity and high prices after the PENGASSAN strike disrupted production at the mega Dangote Refinery.
Source: Legit.ng
