LPG Retailers Link Rising Cooking Gas Prices to Global Supply Disruptions

The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has attributed the recent increase in cooking gas prices to global supply disruptions and geopolitical tensions affecting the international energy market.

The Chairman of LPGAR, Mr. Ayobami Olarinoye, made the assertion in an interview on Saturday, noting that developments in the global oil and gas sector continue to influence domestic LPG prices.

According to him, Nigeria’s cooking gas market remains closely tied to international supply chains, making it difficult to shield consumers from the impact of global events.

He explained that tensions in major oil-producing regions, including the ongoing strain between the United States and Iran, have contributed to supply uncertainties and price fluctuations across energy markets.

Olarinoye called on the Federal Government to intensify efforts aimed at reducing the impact of rising prices on consumers through increased investment in local refining and LPG production facilities.

He also stressed the need for expanded storage infrastructure to meet the growing demand for cooking gas across the country.

“Consumption of LPG has grown significantly in recent years, creating a greater need for storage capacity and supporting infrastructure,” he said.

The LPGAR chairman expressed concern over the hardship faced by households that have embraced cooking gas as a cleaner alternative to traditional fuels, saying the association sympathises with consumers struggling with higher costs.

Despite the current situation, Olarinoye said there were signs of improvement in supply levels, which could help moderate prices in the coming months.

He noted that additional shipments from the Nigeria LNG (NLNG) and imported supplies were gradually increasing market availability, while a major private refinery had recently reduced its ex-depot price by N170 per kilogramme.

According to him, although the reduction in retail prices has been modest, the increased supply could lead to further easing of costs.

Olarinoye, however, identified supply chain pricing and product availability as key challenges confronting LPG retailers.

He alleged that some LPG offtakers operating retail outlets sell directly to consumers at prices lower than those available to independent retailers, creating an uneven market environment.

He urged relevant authorities to investigate the practice, warning that the widening gap between wholesale and retail prices was placing significant pressure on retail operators.

The LPGAR chairman added that retailers were often blamed for price increases despite having little control over the broader market forces driving costs upward.