By Ireti Asemota.
Retailers are reporting dwindling supplies of Liquefied Petroleum Gas (LPG) just weeks after the previous crisis eased and prices began to stabilize. As a result, Nigerians are preparing for a potential new shortage of cooking gas. Retailers who spoke with The PUNCH said that the Dangote Petroleum Refinery is now the only major supplier of domestic LPG. This raises concerns that any operational issue could result in another widespread shortage in the country. Adesola, a retailer in Abeokuta, Ogun State, expressed profound uncertainty, stating that “LPG availability hasn’t improved much.” We’re in the dark about what the coming days or weeks will bring.”
Nationwide, cooking gas now costs between ₦1,200 and ₦1,500 per kilogram, depending on the region—a sharp rise from the pre-crisis level of around ₦900/kg, triggered by a recent labor dispute between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Ayobami Olarinoye, the National Chairman of the Nigeria Union of Petroleum and Natural Gas Workers’ LPG Retailers branch, confirmed that Dangote’s output alone does not meet demand. “Right now, Dangote Refinery is the only source selling LPG. They’re supplying the market, but production simply isn’t enough to meet local needs,” Olarinoye stated.
He noted that most depots have run dry, exacerbating the supply deficit. This gap, combined with pricing mismatches, has deterred other importers from entering the market.
He continued, “Depot owners have no stock to supplement Dangote’s supply.” “Closing the price differential is critical to encourage more importers and restore balance.”
Olarinoye pointed out that LPG prices dipped briefly in October—from ₦2,000/kg to around ₦1,400/kg—after the PENGASSAN dispute was resolved, but have since stabilized above pre-crisis levels of under ₦1,000/kg.
He warned that prices could rise even more if the refinery had to temporarily shut down production for maintenance. “It’s possible, though not certain. If Dangote avoids a full maintenance halt, we’ll likely stay within the current price band,” he said.
Petroleumprice.ng data showed that Dangote’s LPG cost 955 naira per kilogram on Monday, more than 11PLC and Navgas’ rates of 920 naira per kilogram. Dangote Refinery officials rejected claims of overpricing, emphasizing that they do not set retail rates.
“We sell LPG to marketers at ₦715,000 per metric tonne—equivalent to ₦715/kg,” a refinery source said anonymously, citing lack of official clearance to speak publicly.
“Retail pricing is governed by the Petroleum Industry Act and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. We can’t control whether marketers buy at 715/kg and sell at 2,000/kg. Last month, Olarinoye disclosed that Dangote supplied 20,000 metric tonnes of LPG at ₦15.8 million per load, which off-takers then resold for ₦18.4–18.5 million, inflating downstream costs for retailers and end-users.
In response to the crisis, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has pledged to crack down on hoarding and exploitative pricing by marketers.
His intervention comes amid growing public anger over doubled gas prices, even after the PENGASSAN strike ended.
Industry experts warn that relying on one domestic supplier creates vulnerability in Nigeria’s energy sector. Without diversified sources and supportive policies to draw in additional market participants, recurring shortages will continue to strain households and small enterprises.
