Retailers deny claims of manipulating cooking gas prices
The Liquefied Petroleum Gas Retailers Association of Nigeria has distanced its members from the current increase and shortage of cooking gas across the nation, asserting that retailers are not responsible for the rise in prices.
During a statement made in Lagos on Saturday, LPGAR Chairman Mr. Ayobami Olarinoye indicated that the escalating prices are due to supply limitations rather than any manipulation on the part of retailers, as reported by NAN.
Olarinoye remarked, “The recent shortage and surge in LPG prices have caused significant distress for millions of Nigerian households and businesses. We understand this challenge and feel it is necessary to clarify the position of retailers in this situation.”
His comments were a response to recent accusations made by the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, who allegedly held retailers accountable for the rise in prices.
Olarinoye characterized these accusations as “unjust and misleading,” emphasizing that retailers do not operate at the depot level nor do they act as importers or major off-takers.
“Our activities are confined to purchasing gas from plant owners and selling it directly to consumers. Many of us travel to nearby states to obtain LPG at elevated prices due to supply shortages, which inevitably impacts retail prices,” he explained.
Olarinoye pointed out that while the Dangote Refinery has maintained consistent gas prices, irregular supply has resulted in a mismatch between demand and supply, pushing prices higher.
“Some retailers have had to close their businesses for several days or even weeks because they were unable to access supply, leading to significant losses,” he continued.
“If plant owners increase their prices, we have no option but to adapt and raise ours. We cannot afford to sell at a loss.”
He also noted that despite the Dangote Refinery emerging as a key player in the local LPG market, it still does not have the capacity to satisfy the increasing national demand, which has surged from under one million metric tonnes to over 2.3 million metric tonnes yearly.
Olarinoye remarked that multiple off-takers, who were anticipated to fill the supply gap through imports or supply from Nigeria Liquefied Natural Gas (NLNG), have reduced operations due to significant price differences.
He mentioned that currently, Dangote sells a 20-metric-tonne truckload of LPG for approximately ₦15.8 million to ₦16 million, whereas off-takers offer the same volume for about ₦18.5 million to ₦18.6 million. This price disparity, he explained, has driven buyers to opt for the cheaper alternative, which has led to decreased imports and exacerbated the scarcity.
The retailers’ choice to refute allegations of their involvement comes against the backdrop of widespread consumer complaints about paying inflated prices for cooking gas in various locations nationwide.
Numerous households have reported that they are now paying nearly double the normal price for refills, fueling speculation that retailers are exploiting the situation.
However, statistics from the National Bureau of Statistics indicated that the average retail price for refilling a 5kg cylinder of Liquefied Petroleum Gas (cooking gas) actually fell by 22.32% month-on-month, decreasing from ₦8,243.79 in July 2025 to ₦6,404.02 in August 2025.
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