Nigeria may face another round of cooking gas scarcity as retailers warn that supplies are thinning, with the Dangote Refinery currently the only major supplier to the local market.
LPGSupplyCrisis deepens as retailers across Nigeria raise alarm over dwindling supplies of Liquefied Petroleum Gas (LPG), barely weeks after consumers began recovering from the last shortage that sent prices soaring.
Retailers told The PUNCH that the Dangote Petroleum Refinery has become the sole major supplier of LPG, sparking fears that any disruption in its operations could trigger another nationwide shortage.
In Abeokuta, Ogun State, a retailer identified as Adesola lamented the uncertainty surrounding gas availability, saying, “There is no major improvement in LPG supplies. We don’t know what will happen in the next few days or weeks.”
Prices Climb as Supply Tightens
Across the country, the price of cooking gas now ranges between ₦1,200 and ₦1,500 per kilogram, 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 (PENGASSAN) disrupted supply.
Ayobami Olarinoye, National Chairman of the Liquefied Petroleum Gas Retailers (LPGAR) branch of NUPENG, confirmed that Dangote’s current output cannot meet domestic demand.
He explained that most depots have exhausted their stock, creating a widening supply gap and discouraging other marketers from importing gas due to price disparities between Dangote’s refinery output and middlemen rates.
Price Gaps and Market Imbalance
Olarinoye noted that LPG prices dropped slightly in October after the resolution of the PENGASSAN dispute — from ₦2,000/kg to ₦1,400/kg — but have since refused to return to pre-crisis levels below ₦1,000/kg.
He warned that prices could spike again if the refinery halts production for maintenance.
Recent data from Petroleumprice.ng showed that Dangote’s LPG price rose to ₦955/kg, higher than 11PLC and Navgas, which sold at ₦920/kg.
Officials at the Dangote Refinery dismissed allegations of overpricing, insisting that retail prices are beyond the company’s control.
Government Intervention and Industry Concerns
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, recently intervened in the crisis, vowing to clamp down on marketers hoarding gas or exploiting consumers through excessive markups.
The minister’s intervention follows weeks of public frustration after gas prices doubled nationwide despite the suspension of the PENGASSAN strike.
Industry analysts warn that Nigeria’s dependence on a single local supplier poses a significant risk to energy stability. Without diversification and policy support to attract more players into the LPG market, the country could face recurring shortages that burden households and small businesses.
For now, consumers are bracing for uncertainty — and possibly another round of price increases — as supply remains tight and the market anxiously watches the next move of the Dangote Refinery.
