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FG, retailers disagree over rising cost of cooking gas

Federal Government and Liquefied Petroleum Gas (LPG) or cooking gas retailers have differed on the reasons for the scarcity and high prices of the commodity in the market.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo

While government insists the current scarcity and consequently high prices of the product in the country was down to hoarding and diversion of the product by retailers, the latter has claimed that global tensions and foreign exchange largely account for the scarcity.

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Remarking, Monday, in Abuja, during a stakeholders’ meeting convened to address the rising cost of LPG, the Minister of State for Petroleum Resources. Ekperikpe Ekpo, attributed the scarcity to, among other factors, unwholesome practices by retailers.

The minister while alluding to these practices, called on security agencies to support regulators in tackling hoarding, diversion and illegal storage of the product following concerns over rising prices across the country.

Ekpo called on the Nigeria Police Force (NPF), the Economic and Financial Crimes Commission (EFCC), and the Department of State Services (DSS) to work with regulators to prevent practices that disrupt legitimate supply and worsen price pressure on consumers.

“I call on the security agencies, DG DSS, Chairman EFCC, and IG Nigerian Police Force, to support regulators in preventing diversion, hoarding, illegal storage, and disruption of legitimate supply movement along key LPG corridors,” he said.

The minister said the meeting had provided stakeholders an opportunity to share concerns and proposals, but stressed that the time had come to move from discussions to clear commitments, immediate action and accountable follow-through.

He further charged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), led by its Chief Executive Officer, Rabiu Abdullahi Umar, to take co-ownership of the intervention by working with the Nigeria LNG Limited, local LPG plants and major producers to increase local availability, improve coordination, reduce avoidable distribution costs and support stable pricing.

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Ekpo also directed NMDPRA and other regulators to intensify market monitoring, publish regular market updates, investigate hoarding and diversion, and sanction operators found to be manipulating the market.

He urged producers and domestic suppliers to prioritise the Nigerian market, provide reliable supply forecasts and ensure that domestic allocations reach consumers without diversion or delay.

To depot owners and terminal operators, the minister directed them to publish clear loading schedules, report stock and evacuation levels, treat marketers fairly and improve truck turnaround time.

He also asked marketers and importers to bring in additional volumes where necessary, share arrival and discharge timelines, price responsibly and avoid withholding products for speculative gain.

Ekpo tasked transporters and logistics operators with increasing truck availability, clearing delivery bottlenecks, keeping haulage costs transparent and moving products quickly to areas of high demand.

Retailers and plant operators were also directed to display prices clearly, avoid arbitrary increases, maintain safe dispensing practices and report supply disruptions promptly.

The minister further called on consumer protection and public communication agencies to keep Nigerians informed, provide reporting channels, counter misinformation and promote safe LPG handling practices.

According to him, the responsibilities assigned to stakeholders must translate into visible improvements for Nigerians.

“I charge every stakeholder to deliver outcomes Nigerians can see and feel: more LPG in the market, faster movement to retail points, fewer artificial bottlenecks, stronger enforcement, clearer consumer information, and measurable relief in price pressure,” Ekpo said.

He assured Nigerians that the Federal Government would remain vigilant by monitoring developments, intervening where necessary, protecting consumers, supporting responsible investment and advancing a gas-powered economy that delivers cleaner cooking, energy security and improved quality of life.

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Meanwhile, reacting to the current scarcity and high prices of cooking gas in the country, the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has claimed that rising cooking gas prices are being driven largely by global supply disruptions, particularly tensions involving the United States and Iran.

The association’s chairman, Mr Ayobami Olarinoye, who made this known on Saturday in Lagos, said developments in the international oil and gas market continue to have direct effects on Nigeria’s LPG pricing and supply stability.

He explained that the sector operates within a global framework, making it difficult for Nigeria to fully insulate domestic prices from external shocks.

According to him, disruptions in global supply chains have contributed to recent price increases, affecting consumers across the country, as he called for stronger government intervention, including increased investment in refineries and expanded LPG production capacity.

While stressing the need for improved storage infrastructure to match rising domestic demand for cooking gas, Olarinoye stated that consumption of LPG in Nigeria has increased significantly, putting additional pressure on supply systems and distribution networks. The association expressed sympathy for Nigerians who have switched to cleaner cooking energy and are now facing higher costs. Olarinoye said price trends are still largely determined by market forces but noted that there are signs of gradual stabilisation as new supplies enter the market.

He pointed to increased product inflows through NLNG allocations and imports as factors that could help ease prices in the coming months. According to him, a recent price reduction by a private refinery has already begun to reflect in the market, though the impact remains limited. Olarinoye also raised concerns over pricing practices within the distribution chain, alleging that some offtakers sell directly to consumers at lower rates than independent retailers.

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“The oil and gas sector operates within a global market. It is difficult to isolate our LPG from global developments.

“International events have disrupted supply chains, making it difficult for Nigeria to avoid price impacts.

“LPGAR is sympathetic to Nigerians who embraced cooking gas and now face rising prices.

“The consumption pattern for LPG has changed significantly and increased substantially. We need more storage capacity and related facilities.

“Presently, the price is gradually coming down, although the reduction is marginal,” he said.

Meanwhile, on its part, while also reacting to the scarcity, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) had earlier, last month, blamed erratic supply and hike in depot price as reasons for the scarcity.

The group, in a statement, lamented that cooking gas retailers are forced to pay as much as N25, 200, 000 or N26, 200, 000 for a 20MT (metric tonne) of cooking gas, depending on location.

The statement by the association, therefore, drew the attention of the Federal Government, its agencies, importers, LPG producers, depot owners, consumers alike to the ‘pathetic’ situation whereby its members are forced to buy the commodity at an exorbitant price and sell to consumers at same.

“It is sad and rather very pathetic to inform the general public that the citizens of Nigeria have woken up to buy cooking gas, which should be a social item at a prohibitive cost of over N1,500 per kg, while the Marketers are made to pay as much as N25,200,000, or, depending on location, N26,200,000 for 20MT of cooking gas.

“We feel that if the situation is not immediately checked, the citizens may rise against the owners of gas filling stations,” the association said

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