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.”
By Saidu Idris
365Daily – The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has attributed the persistent hike and scarcity of cooking gas to supply challenges and market distortions, not price manipulation by retailers.
In a statement issued on Saturday, October 11, 2025, the chairman of LPGAR under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Ayobami Olarinoye, said the situation is a reflection of supply disruptions and uncompetitive pricing among major players in the sector.
“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.
His clarification came in response to comments reportedly made by the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who blamed retailers for the price surge.
Describing the accusation as “unfair and misleading,” Olarinoye explained that retailers do not control prices at the production or importation level.
“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.
He noted that although Dangote Refinery has not increased its LPG price, irregular supply has created a demand-supply gap that continues to push prices upward.
“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,” he added.
Olarinoye emphasised that the ongoing price hike is purely market-driven, as retailers are forced to adjust prices when plant owners increase theirs.
“If plant owners increase prices, we have no choice but to adjust ours. We cannot be expected to sell at a loss,” he stated.
He explained that while Nigeria’s annual LPG demand has grown from under one million metric tonnes to over 2.3 million metric tonnes, Dangote Refinery alone cannot meet the national requirement.
According to him, off-takers who should complement local supply by importing or sourcing from the Nigeria Liquefied Natural Gas (NLNG) have slowed operations due to high and uncompetitive pricing.
“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. Naturally, buyers opt for the cheaper option, reducing importation and worsening scarcity,” he said.
The LPGAR chairman also pointed to the recent PENGASSAN strike as another factor that disrupted 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 said.
Olarinoye urged the federal government to address the pricing gap between Dangote and off-takers to stabilise the market.
“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 noted.
He maintained that the current crisis is rooted in systemic supply and pricing issues, not the fault of retailers.
“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 appealed.
Assuring customers of the union’s commitment to restoring stability, Olarinoye said the market will remain volatile until supply improves.
“We share the public’s frustration and are working toward solutions. Until then, supply and demand will continue to drive market prices,” he concluded.