October 11, 2025-Published by Cyril

The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has absolved its members of responsibility for the recent surge in the price and scarcity of cooking gas, insisting that retailers are not behind the market instability.

In a statement released on Saturday in Lagos, the Chairman of LPGAR under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr. Ayobami Olarinoye, said the current crisis stems from nationwide supply challenges 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 the pain, but must clarify that retailers are not to blame,” Olarinoye stated.

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His response followed claims by the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who accused retailers of contributing to the price surge — an allegation Olarinoye described as “unfair and misleading.”

According to him, retailers neither import gas nor operate at the depot level, as their activities are restricted to purchasing from gas plant owners and selling directly to end-users.

• “Many retailers travel to neighbouring states to source LPG at high costs due to supply shortages, and that automatically affects our retail prices,” he explained.

Olarinoye further noted that although Dangote Refinery has not increased its LPG prices, irregular supply has created a major demand-supply gap that continues to push prices upward.

• “Some retailers have had to close their outlets for days or even weeks because they couldn’t access gas. This has caused massive business losses and operational strain,” he added.

He stressed that the rise in price was purely market-driven, not deliberate exploitation by retailers.

• “If plant owners raise prices, we have no choice but to adjust ours. No one expects retailers to sell at a loss,” he said.

Olarinoye also pointed out that while the Dangote Refinery has become a key supplier, it cannot yet meet the country’s total demand, which has grown from less than one million metric tonnes to over 2.3 million metric tonnes per year.

He blamed the worsening scarcity partly on off-takers who 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 sell the same at ₦18.5 to ₦18.6 million. Naturally, buyers prefer the cheaper option, reducing importation and deepening scarcity,” he explained.

Olarinoye added that the recent Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) strike further disrupted the already fragile supply chain.

• “Even though the strike has been suspended, supply is yet to stabilise. Some plant owners who have paid Dangote Refinery are still waiting in long queues to load,” he noted.

He urged the Federal Government to bridge the pricing gap between Dangote and other suppliers to ensure a steady and affordable gas supply nationwide.

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• “If off-takers were earning fair margins, they would import more and price competitively. As it stands, many are reluctant to restock,” he said.

Olarinoye emphasised that the current crisis results from systemic supply issues rather than retail-level manipulation, calling for collaboration among all industry stakeholders.

• “Blaming retailers won’t solve the problem. What we need is a coordinated effort from government and industry players to boost domestic production, ensure competitive pricing, and stabilise supply,” he concluded.

He reassured Nigerians that the association remains committed to restoring stability in the LPG market.

• “We share the frustration of the public and are working towards solutions. Until then, market prices will continue to be influenced by supply and demand,” Olarinoye said.

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