Why cooking gas prices are rising – Marketers

Why Cooking Gas Prices Are Rising - Marketers' Perspective

In recent weeks, Nigerians have been grappling with a sharp increase in the price of cooking gas, with rates soaring from an average of ₦1,200–₦1,300 per kilogram to as high as ₦2,000 and even ₦3,000 in some areas.

This unexpected surge has sparked widespread concern, especially as many households rely on Liquefied Petroleum Gas (LPG) for daily cooking needs.

However, according to the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), the price hike is not due to any official adjustment or government policy but rather stems from a combination of temporary supply disruptions and opportunistic market behavior.

Oladapo Olatunbosun, the National President of NALPGAM, clarified the situation during an interview on Channels Television’s “The Morning Brief.” He emphasized that there has been no formal increase in the price of LPG. Instead, the current spike is attributed to certain marketers exploiting a temporary shortage in supply.

These marketers, he said, are taking advantage of increased demand and reduced availability to inflate prices and maximize profits, a practice the association strongly condemns.

The supply disruption began when the Dangote Refinery, which had significantly improved domestic LPG distribution by eliminating middlemen and selling directly to offtakers, temporarily halted operations for maintenance and renovation.

Prior to this, Dangote was dispatching around 50 trucks daily, serving the South-West and parts of the North efficiently. During the maintenance period, however, trucks were delayed for up to 14 days before receiving products, forcing marketers to seek alternatives from Apapa depots.

Compounding the issue was a strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which further disrupted operations. The strike affected vessel discharges and inspections, leading to a backlog and drying up stocks at key depots. Even when vessels arrived, the absence of inspection officers due to the strike caused additional delays, exacerbating the scarcity.

Olatunbosun described the situation as artificial and temporary, assuring Nigerians that normalcy would return soon. He noted that the South-West region, which consumes the largest share of LPG in Nigeria, was hit hardest by the disruption. He also highlighted that Nigeria’s annual LPG consumption has grown from 1.2 million metric tonnes to nearly two million metric tonnes over the past three years, increasing the pressure on supply chains during any disruption.

In response to the crisis, NALPGAM is working with relevant authorities to stabilize supply and restore pricing. The association also urged consumers to purchase cooking gas directly from registered gas plants to avoid inflated prices often imposed by middlemen.

While the current situation remains challenging, marketers and stakeholders are optimistic that with resumed operations and restored supply chains, prices will soon return to more affordable levels.