The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has refuted claims that gas retailers are responsible for the recent surge in cooking gas prices across the country.
The association explained that the current price hike is due to supply challenges rather than manipulation by retailers.
In a statement released in Lagos, the Chairman of LPGAR under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Ayobami Olarinoye, said the persistent scarcity and increase in gas prices have caused severe hardship for Nigerian households. He noted that it was important to clarify the role of retailers amid widespread accusations. According to him, retailers neither operate at depots nor serve as major suppliers, making it impossible for them to influence pricing at the source.
“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 stated. He further described allegations made by some industry stakeholders blaming retailers as unfair and misleading.
Explaining further, Olarinoye said the sharp rise in prices stemmed from limited gas supply rather than profit-driven actions. “Our operations are limited to buying gas from plant owners and selling to end users. Many of us travel long distances to source gas at high costs due to supply shortages, which naturally affects retail prices,” he explained. He added that the recent PENGASSAN strike further worsened the situation, creating bottlenecks in distribution.
He pointed out that although Dangote Refinery had not increased its gas price, it currently lacks the capacity to meet national demand, which has risen to over 2.3 million metric tonnes yearly. “Some plant owners have even paid for gas but are yet to load due to long queues and supply delays,” he noted. Olarinoye said that while Dangote sells a 20-metric-tonne truckload of LPG at around N15.8 to N16 million, off-takers price theirs at about N18.6 million, making it difficult for many marketers to compete.
The LPGAR chairman called on the Federal Government to intervene and bridge the price gap between Dangote and off-takers to ensure market stability. “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 said. He assured consumers that retailers remain committed to restoring normalcy and supporting fair pricing as soon as supply improves.