Key points
- Gas retailers have urged domestic cooking gas producers to prioritize the local market before considering exports to help curb soaring prices.
- Roadside vendors are selling cooking gas at ₦2,000 per kilogram, while major fuel marketers maintain a lower pricing threshold of ₦1,600 per kilogram.
- Supply challenges and a severe logistics cost surge have driven the wholesale price of gas up to ₦1.7 million per tonne.
- The ministry of petroleum dismissed claims of ongoing domestic product leaks, confirming that the current federal export ban is strictly enforced.
- Major fuel marketers have committed to importing additional volumes ahead of a new processing plant coming online this July.
Main Story
Nigerian cooking gas retailers are demanding that domestic production companies completely halt external shipments and focus on supplying local markets to curb skyrocketing costs.
Speaking to journalists on Sunday in Abuja, Promise Ajujumbu, the Public Relations Officer for the Nyanya branch of the Liquefied Petroleum Gas Retailers (LPGAR), explained that the severe pricing crisis stems from a mix of international supply chain pressures and deep logistical bottlenecks.
Currently, roadside retailers are charging consumers ₦2,000 per kilogram for cooking gas, while major commercial marketers like NIPCO maintain prices around ₦1,600 per kilogram, sparking widespread frustration among households struggling with basic living expenses.
The retail union alleged that some major domestic gas producers might be quietly prioritizing international exports over local allocations to capture higher foreign currency returns. This supply deficit has drastically inflated procurement costs for distributors, pushing wholesale prices from an average of ₦900,000 per tonne prior to the scarcity up to nearly ₦1.7 million per tonne.
Retailers added that the continuous rise in diesel prices has further worsened distribution expenses across the country, given the sector’s heavy reliance on diesel-powered trucks to transport gas products to regional hubs.
In a swift reaction to the supply accusations, Louis Ibah, the spokesperson for the Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, strongly rejected claims that domestic cooking gas is being exported to the detriment of local consumers. Ibah clarified that no energy firm is currently exporting gas meant for the domestic market, emphasizing that the federal export ban announced by the ministry remains fully operational and closely monitored by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
To stabilize retail costs, the government confirmed that independent marketers are aggressively importing extra gas volumes, while the upcoming launch of a new Seplat Gas facility this July is expected to significantly boost internal production and ease national scarcity pressures.
The Issues
- Balancing the immediate domestic demand for affordable cooking gas against the profit motives of local producers seeking stronger global export revenue.
- Reversing the inflationary impact of high diesel prices on the long-distance transport networks that distribute heavy gas assets.
- Transitioning regional distribution networks smoothly as new local processing facilities prepare to start operations next month.
What’s Being Said
- Outlining the commercial strain on local distribution networks, LPGAR Public Relations Officer Promise Ajujumbu urged: “The local market should be adequately supplied before exports are considered. There are concerns that some local producers may be prioritising exports because of better returns, and this is affecting product availability in the domestic market.”
- Defending state regulatory compliance, ministerial spokesperson Louis Ibah maintained that no domestic gas is leaking into export routes, confirming that the federal ban remains active while adding that a fresh facility launch “is expected to commence LPG supply to the domestic market in July, a development that will significantly improve product availability across the country.”
What’s Next
- Regulatory inspectors from the NMDPRA will intensify border checks and port audits to verify strict compliance with the cooking gas export ban.
- Major energy marketers will finalize incoming shipping schedules to offload imported gas volumes at domestic ports.
- Engineers at the Seplat Gas plant will conclude final equipment calibrations ahead of their scheduled commercial product rollout next month.
Bottom Line
While local retail groups blame cooking gas inflation on export diversions and skyrocketing diesel transport costs, federal authorities maintain that a strict export ban is being enforced, counting on private import volumes and an upcoming July plant launch to solve the national supply squeeze.
