Users of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, can expect relief soon as major buyers with gas purchase agreements from the Nigerian Liquefied Natural Gas (NLNG) company have ramped up product loading to curb shortages that have recently driven prices upward.
Our sources revealed that last Friday, NIPCO Gas and 11Plc Gas began offloading LPG from NLNG, with loading activities set to intensify from Monday night to strengthen distribution networks across the market.
Despite these efforts, several key players in the LPG sector remain uncertain about how long the current price volatility will persist.
An insider from a prominent LPG marketing association, who preferred to remain anonymous, shared insights into the unfolding situation, highlighting multiple factors contributing to the market’s unpredictability.
He explained that depot operators involved in importing LPG suffered significant financial losses when Dangote Refinery started producing LPG, which initially caused prices to drop sharply.
However, a brief strike by the oil sector union forced the refinery to suspend LPG production temporarily. This disruption was compounded by the refinery’s limited storage capacity for LPG, as its primary focus is on refining petrol and aviation fuel rather than gas storage.
Another source within the major marketing companies indicated that it might take until the weekend for supply levels to stabilize fully.
“Unlike petrol, LPG loading is restricted to about 25 trucks per night due to safety protocols and documentation requirements. Nevertheless, with the current increase in loading activities, consumers in Lagos and other South West states should soon experience a noticeable drop in prices,” the source explained.
Consumers interviewed by our reporter shared their experiences amid the price fluctuations. One individual mentioned, “My husband recently purchased cooking gas for N2,000 per kilogram.”
Another customer, who traveled a considerable distance to access more affordable gas, said, “I came all the way from Agege to this station in Ikeja because prices here are much lower. While gas costs N2,500 per kilogram in Agege, it’s only N1,500 near Oba-Akran. Previously, we used to pay around N1,100, but now the prices have surged.”
Ajayi Abayomi, a senior official at a gas station in the Anifowoshe area of Oba-Akran, Ikeja, confirmed their current selling price is N1,500 per kilogram.
He attributed the price increase primarily to supply constraints. “There’s no other reason besides limited availability. The gas we’re selling was redirected from our operations in Port Harcourt, Rivers State. We had to transport it here to ensure our customers aren’t left without gas,” he said.
Ajayi further noted that their usual supply sources include Dangote Petroleum Refinery & Petrochemicals and Apapa, but recent disruptions have complicated the supply chain.
“The price hike is partly due to the conflict between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery. This dispute affected operations in Apapa, where gas deliveries were halted. The suspension caused scarcity, which in turn pushed prices up,” he explained.
He added that when Dangote Refinery stopped selling gas, other suppliers quickly increased their prices. “We purchase from these suppliers and sell at their rates. Previously, gas was under N1,000 per kilogram, but now it’s N1,500,” he emphasized.
It is worth recalling that in January 2022, NLNG pledged to allocate 100% of its Butane (cooking gas) and Propane production to the Nigerian domestic market. This commitment aims to enhance LPG availability, affordability, and accessibility nationwide.
This initiative, launched under the Domestic LPG (DLPG) scheme, seeks to boost national LPG consumption, support the government’s “Decade of Gas” program, and reduce dependence on imported gas.
Currently, NLNG supplies all its Butane production domestically, making it the largest single LPG supplier in Nigeria. The commitment was later extended to include all Propane production for cooking gas blending and various industrial uses.
Through ongoing collaboration with stakeholders, NLNG aims to ensure price stability and foster a sustainable LPG market in the long term.