We Can’t Sell Gas At A Loss If Plant Owners Raise Price – LPGAR

Cooking Gas

The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has distanced itself from the present hike and scarcity of Liquefied Petroleum Gas (LPG), also known as cooking gas. The group recently revealed that the rising cost and limited availability of LPG are a result of supply challenges, not price manipulation by retailers.

In a press statement, Chairman of LPGAR under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Mr Ayobami Olarinoye, said that the association is aware that the recent scarcity and spike in LPG prices has been tough for Nigerian households.

According to him, LPGAR fully understands how inconvenient the situation is, but it is important to clarify that retailers are not responsible for the crisis.

“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.

Reacting to the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) blaming retailers for the price surge, Ayobami described the allegation as unfair and misleading, stressing that retailers neither operate at the depot level nor act as importers or primary off-takers.

He concluded by urging the government to bridge the price gap between Dangote and off-takers to ensure consistent supply and market stability.

“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.

Some retailers have had to shut their outlets for days or weeks because they couldn’t access supply, resulting in huge business losses and operational strain.

If plant owners increase prices, we have no choice but to adjust ours. We cannot be expected to sell at a loss.

Dangote sells a 20-metric-tonne truckload of LPG at about N15.8 to N16 million, while off-takers offer the same quantity at N18.5 to N18.6 million.

Naturally, buyers opt for the cheaper option, reducing importation and worsening scarcity.

Even after the strike was called off, supply has not stabilised. Some plant owners have paid for gas from Dangote but are yet to load due to long queues and limited availability.

We don’t know the exact landing costs from NLNG, but if off-takers were making enough profit, they would price competitively. As it stands, they’re reluctant to restock.

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.

We share the public’s frustration and are working toward solutions. Until then, supply and demand will continue to drive market prices,” he added.