Retailers under the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) have distanced themselves from the recent spike in the price and scarcity of cooking gas, saying they’re unfairly being blamed for a crisis beyond their control.
Mr. Ayobami Olarinoye, chairman of LPGAR — which operates under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) — made this known in a statement released on Saturday in Lagos.
Olarinoye explained that the soaring cost and dwindling availability of Liquefied Petroleum Gas (LPG) are the results of supply disruptions, not 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,” he said.
His comments came in response to allegations made by the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who suggested retailers were to blame for the recent price hikes.
Olarinoye called the accusation “unfair and misleading,” stressing that retailers neither import gas nor control pricing at the source.
> “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 explained.
While acknowledging that Dangote Refinery has not raised its LPG prices, Olarinoye pointed to persistent supply issues as the main driver of the imbalance between supply and demand — which in turn is pushing prices up.
He noted that some retailers have had no choice but to temporarily shut down due to lack of access to supply, causing significant business losses.
> “If plant owners increase prices, we have no choice but to adjust ours. We cannot be expected to sell at a loss,” he said.
Olarinoye added that while Dangote Refinery is now a key player in the market, it alone cannot meet the country’s growing LPG demand, which has surged from under a million metric tonnes to over 2.3 million metric tonnes annually.
He noted that off-takers, who are supposed to complement supply by importing or sourcing from Nigeria Liquefied Natural Gas (NLNG), have slowed their operations due to pricing disadvantages.
> “Dangote sells a 20-metric-tonne truckload of LPG at about ₦15.8 to ₦16 million, while off-takers are offering the same quantity at ₦18.5 to ₦18.6 million. Naturally, buyers go for the cheaper option. This discourages importation and deepens the scarcity,” he said.
Olarinoye further revealed that the recent PENGASSAN strike worsened an already fragile supply chain. Even after the strike was suspended, gas delivery has yet to fully recover.
> “Some plant owners have paid for gas from Dangote but are still unable to load due to long queues and limited availability,” he noted.
He urged the federal government to address the price gap between local producers and importers, warning that without intervention, the market will remain volatile.
> “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.
Olarinoye reassured the public that LPGAR remains committed to easing the crisis.
> “We share the public’s frustration and are working toward solutions. Until then, supply and demand will continue to drive market prices,” he concluded.
