The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has distanced its members from the ongoing hike and scarcity of cooking gas across the country, insisting that retailers are not responsible for the price surge.
According to the News Agency of Nigeria (NAN), LPGAR Chairman, Mr. Ayobami Olarinoye, said on Saturday in Lagos that the current situation is driven by supply constraints rather than 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 recent claims by the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who reportedly accused retailers of causing the price hike. Olarinoye described the allegations as “unfair and misleading,” explaining that retailers neither operate at depot level nor act as importers or major off takers.
What they said
“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 stated.
Olarinoye clarified that although Dangote Refinery has maintained stable gas prices, supply irregularities have created a demand-supply imbalance, which continues to push up prices.
“Some retailers have had to shut their outlets for days or weeks because they couldn’t access supply, resulting in huge business losses,” he added.
He noted that the price increase is purely a function of market dynamics. “If plant owners increase prices, we have no choice but to adjust ours. We cannot sell at a loss,” he said.
Olarinoye further explained that while Dangote Refinery has become a key player in the domestic LPG market, it does not yet have the capacity to meet national demand which has grown from under one million metric tonnes to over 2.3 million metric tonnes annually.
He explained that several off takers expected to supplement Dangote’s supply through imports or sourcing from the Nigeria Liquefied Natural Gas (NLNG) have reduced their operations due to significant pricing disparities.
Dangote currently sells a 20-metric-tonne truckload of LPG for about N15.8 to N16 million, while off-takers offer the same quantity at around N18.5 to N18.6 million. This price gap has prompted buyers to opt for the cheaper source, leading to reduced importation and worsening scarcity.
The recent PENGASSAN strike also intensified the strain on an already fragile supply chain, leaving some plant owners unable to load gas despite making payments.
Olarinoye called on the government to close the pricing gap between local producers and importers to stabilise supply and ensure consistent market pricing.
He emphasised that resolving the crisis requires coordinated efforts among government agencies, producers, and marketers to strengthen domestic production, foster competitive pricing, and restore balance to the LPG market.
What you should know
The retailers’ decision to debunk rumours of their involvement follows widespread reports from customers who said they purchased cooking gas at exorbitant prices across several parts of the country.
- Many households have complained about paying nearly double the usual cost for refills, further fueling speculation that retailers were exploiting the situation.
- The National Bureau of Statistics (NBS) reported that the average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) decreased by 22.32% on a month-on-month basis from N8,243.79 recorded in July 2025 to N6,404.02 in August 2025.
- The report also stated that the average retail price for refilling a 12.5kg Cooking Gas decreased by 21.42% on a month-on-month basis from N20,609.48 in July 2025 to N16,195.07 in August 2025.
NBS data shows that Nigeria’s headline inflation rate eased for the fifth consecutive month, dropping to 20.12% in August 2025 from 21.88% recorded in July 2025.
