Retailers under the aegis of the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) have blamed the rising prices of cooking gas in the country on foreign exchange instability, high depot prices, and distribution costs.

Chairman of the group, Ayobami Olarinoye, who disclosed this, Tuesday, further warned that the country’s dependence on imported liquefied petroleum gas (LPG) will continue to expose the market to exchange rate volatility, which directly impacted landing costs at the ports.

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According to him, the weakening Naira has pushed up import costs, while limited local supply has further tightened product availability, just as he added that high transportation costs, driven largely by diesel-powered trucks, had further increased retail prices nationwide.

‘High depot prices remain a major challenge.

“Since Nigeria imports a huge chunk of LPG, a weak naira directly translates to more expensive gas at the ports.

“Moving LPG across the country depends heavily on diesel-powered trucks, and rising diesel prices continue to inflate the final price retailers pay before selling to consumers,” Olarinoye said.

To address the rising cost of cooking gas, the group’s leader called on the Federal Government to mandate Nigeria LNG and other domestic producers to sell LPG in naira to local off-takers, just as he called for stricter regulation of depot operators to prevent hoarding and sudden price increases, as well as improved infrastructure to reduce logistics costs.

Absolving his members of complicity in the high price of cooking gas in the country, Olarinoye explained that retail margins remain slim, adding that final prices largely reflect procurement costs from depots, even as he further stressed that retailers were not responsible for arbitrary price increases, noting that competition at the retail level limits excessive pricing.

“LPGAR does not support arbitrary pricing.

“Our members operate at the last mile and are fully aware of consumer frustration,” he said

Olarinoye explained the government policies affecting the sector as mixed, noting that while the removal of VAT on LPG imports provided initial relief, gains were offset by currency depreciation.

According to him, the removal of subsidy on petrol also increased the demand for LPG as households and businesses switched to gas-powered alternatives.