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🇳🇬 Nigeria /Economy & Trade

Cooking gas scarcity persists despite fresh imports

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Cooking gas retailers report persistent supply shortages despite recent imports, leading to soaring prices and consumer hardship.
  • Fresh LPG shipments have not improved availability, with marketers and retailers struggling to access products from plant operators.
  • The scarcity and high prices may continue unless the government intervenes, with local refineries reportedly exporting gas for foreign currency.

Retailers of liquefied petroleum gas (LPG), commonly known as cooking gas, are sounding the alarm over ongoing supply shortages in Nigeria. Despite the arrival of new LPG shipments, availability remains critically low, driving prices up and causing significant distress for consumers nationwide.

The cooking gas situation remains almost the same. Though the supply was a little bit better because a shipment of LPG came in late May (owned by a company I will not like to mention), the price remains high.

— Ayobami OlarinoyeChairman of the Liquefied Petroleum Gas Retailers Association of Nigeria, describing the persistent scarcity and high prices.

Ayobami Olarinoye, Chairman of the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR), stated that while a recent cargo improved supply slightly, marketers and retailers still face immense difficulties accessing the product. He explained that many plant operators are struggling to secure gas, making it nearly impossible for retailers to obtain stock. "Getting the product has been excruciatingly difficult and it is not readily available," Olarinoye said. "Out of every 10 plants, only one or two would have products to sell to our members."

The situation has led to neighborhood retailers selling cooking gas for as much as N2,400 per kilogramme. Olarinoye warned that prices are unlikely to decrease without government intervention. He also pointed to the export of locally produced LPG to neighboring countries for foreign currency as a contributing factor to the domestic scarcity, noting that it is more profitable for local refineries to sell abroad.

Getting the product has been excruciatingly difficult and it is not readily available. Out of every 10 plants, only one or two would have products to sell to our members.

— Ayobami OlarinoyeExplaining the difficulties retailers face in accessing cooking gas from plant operators.

Retailers are struggling to access products, with many plant owners reserving shipments for their own retail outlets. This practice further exacerbates the supply challenges in the downstream market, leaving consumers to bear the brunt of high costs and limited availability.

We understand a private local refinery is selling most of its product to West African customers in foreign currency, which is more profitable for the company than selling in the local currency.

— Ayobami OlarinoyeLinking the domestic supply challenge to the export of locally produced LPG.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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