The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has distanced its members from the recent surge in the price and scarcity of cooking gas across the country, insisting that retailers are not responsible for the current hardship facing consumers.
Chairman of the association under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr. Ayobami Olarinoye, stated this in a press release issued on Saturday in Lagos.
Mr. Olarinoye explained that the ongoing hike in Liquefied Petroleum Gas (LPG) prices is a result of supply challenges and market instability, not 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 comments credited to the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who allegedly blamed retailers for the price surge.
Describing such claims as “unfair and misleading,” the LPGAR chairman stressed that retailers neither import gas nor operate at depot or refinery levels, but simply buy from plant owners and sell to end-users.
“Many of our members travel to neighbouring states to buy LPG at high prices due to limited availability. Naturally, this affects retail prices. We do not control the supply chain,” he explained.
According to him, despite Dangote Refinery not increasing its gas price, irregular supply has created a demand-supply imbalance that continues to push prices upward.
Mr. Olarinoye added that some retailers have temporarily closed their outlets due to the difficulty in accessing supply, resulting in financial losses and business strain.
He noted that the situation is worsened by the limited capacity of Dangote Refinery, which cannot yet meet the country’s annual demand of over 2.3 million metric tonnes of LPG.
While Dangote sells a 20-metric-tonne truckload of LPG for between ₦15.8 million and ₦16 million, off-takers reportedly sell the same quantity for about ₦18.5 million, making their prices less competitive and discouraging imports.
The LPGAR chairman also blamed the recent strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for further disrupting supply, noting that even after the strike was suspended, normal distribution had yet to resume.
He therefore called on the Federal Government to intervene by addressing price disparities between local producers and off-takers to ensure steady supply and market stability.
“Blaming retailers will not solve the problem. We urge government and industry stakeholders to collaborate in boosting domestic production, encouraging competitive pricing, and stabilising gas supply nationwide,” Olarinoye appealed.
He assured Nigerians that the association remains committed to supporting efforts that will restore normalcy in the market, while reaffirming that current price fluctuations are driven purely by market forces.
“We share the public’s frustration and are working towards lasting solutions. Until supply stabilises, prices will continue to reflect the realities of the market,” he said.