LPG retailers say ‘global tensions behind rising cooking gas prices’
The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has blamed rising cooking gas prices on global supply disruptions, especially US-Iran tensions.
Mr Ayobami Olarinoye, LPGAR Chairman under the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), disclosed this in Lagos.
Speaking on Saturday with the News Agency of Nigeria (NAN), Olarinoye said global developments continue to affect Nigeria’s petroleum product market.
“The oil and gas sector operates within a global market. It is difficult to isolate our LPG from global developments,” he said.
He explained that international events have disrupted supply chains, making it difficult for Nigeria to avoid price impacts.
Olarinoye urged government intervention to cushion the effects on consumers.
He called for increased investment in refineries, especially facilities focused on LPG production.
The LPGAR chairman said more storage capacity and infrastructure were needed to support rising demand.
“The consumption pattern for LPG has changed significantly and increased substantially. We need more storage capacity and related facilities,” he said.
He described the situation as unfortunate for Nigerians who switched to cleaner cooking energy.
“LPGAR is sympathetic to Nigerians who embraced cooking gas and now face rising prices,” he said.
Olarinoye said current prices are largely driven by market forces but urged closer industry cooperation.
He expressed optimism that prices could ease as supplies improve through NLNG allocations and imports.
“Presently, the price is gradually coming down, although the reduction is marginal.
“More shipments of gas are entering the market through NLNG offtakers and importation,” he said.
He also noted that a private refinery recently reduced its ex-depot price by N170 per kilogramme.
The price adjustment reportedly moved the rate from N1,400 per kilogramme.
Olarinoye identified product availability and supply chain pricing as major challenges facing retailers.
He alleged that some LPG offtakers operating retail outlets sell directly below independent retailers’ purchase prices.
“We discovered that some offtakers who own retail stations sell to end users at lower prices,” he said.
He described the practice as an issue requiring further investigation by relevant authorities, warning that the price gap was creating pressure for LPG retailers.
“The margin between wholesale and retail prices is making business difficult for our members,” he said.
He added that retailers were wrongly blamed for increases caused by broader market challenges.
(NAN)
