Retailers Raise Alarm Over Possible Cooking Gas Shortage

Nigeria may be heading toward another round of cooking gas shortages as retailers raise concerns over dwindling supplies of Liquefied Petroleum Gas (LPG). The warning comes just weeks after consumers began recovering from the previous scarcity that sent prices soaring across the country.

According to retailers, the Dangote Petroleum Refinery has become the sole major supplier of LPG to the domestic market, sparking fears that any disruption in its operations could trigger a fresh nationwide shortfall.

In Abeokuta, Ogun State, a retailer identified as Adesola expressed worry about the unstable supply situation. “There’s no significant improvement in LPG availability. We’re uncertain about what could happen in the coming days,” he said.

Across various regions, cooking gas prices currently range between ₦1,200 and ₦1,500 per kilogram, depending on location — up from around ₦900/kg before the recent industrial dispute between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria disrupted production.

Ayobami Olarinoye, National Chairman of the Liquefied Petroleum Gas Retailers branch of the Nigeria Union of Petroleum and Natural Gas Workers, confirmed that Dangote’s current output alone cannot meet national demand.

“As of now, only the Dangote Refinery is supplying the market,” he said. “Although we appreciate the refinery’s effort to push out gas, production levels are not sufficient to cover local consumption.”

Olarinoye added that most depots have exhausted their stock, widening the supply gap and discouraging other marketers from importing gas due to pricing inconsistencies between Dangote’s supply and middlemen rates. “There’s an urgent need to bridge the price gap preventing other players from importing products so the market can stabilise,” he noted.

He recalled that LPG prices dropped slightly in October after the resolution of the PENGASSAN strike — from ₦2,000/kg to about ₦1,400/kg — but have since failed to return to pre-crisis levels below ₦1,000/kg.

Olarinoye warned that prices could rise again if the Dangote Refinery temporarily halts operations for maintenance. “If production stops, even briefly, prices could surge again,” he said.

Data from Petroleumprice.ng showed that as of Monday, Dangote’s LPG price rose to ₦955/kg, compared with ₦920/kg offered by 11PLC and Navgas.

Officials from the Dangote Refinery denied claims of overpricing, maintaining that retail prices are outside the company’s control. “Marketers buy LPG from us at ₦715,000 per metric tonne — about ₦715/kg,” an official stated anonymously. “We don’t fix retail prices; that’s under the Petroleum Industry Act and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.”

Last month, Olarinoye revealed that Dangote sold LPG to off-takers at ₦15.8 million per 20,000 metric tonnes, while resellers charged between ₦18.4 million and ₦18.5 million — a margin that ultimately burdens consumers.

In response to the ongoing situation, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has pledged to clamp down on marketers hoarding gas or inflating prices unfairly.

Analysts have warned that Nigeria’s reliance on a single domestic supplier poses a major risk to energy security. Without diversifying the LPG supply base and encouraging more investors, they cautioned, periodic shortages could persist — further straining households and small businesses.

For now, consumers remain on edge as tight supply conditions and price uncertainty continue to dominate the market, with many watching closely for the next move from the Dangote Refinery.