Retailers say the latest increase in Cooking Gas price is not driven by arbitrary mark-ups at the last mile, but by Nigeria’s dependence on imported gas, exchange-rate volatility, high depot LPG prices and expensive distribution logistics.

The Liquefied Petroleum Gas Retailers Association of Nigeria has attributed the persistent rise in cooking gas prices across the country to foreign-exchange instability, high depot prices, limited domestic supply and rising distribution costs.

The Chairman of LPGAR, under the Nigeria Union of Petroleum and Natural Gas Workers, Mr Ayobami Olarinoye, said Nigeria’s continued dependence on imported Liquefied Petroleum Gas exposes the market to exchange-rate volatility, which feeds directly into landing costs at the ports and, ultimately, retail prices paid by households.

Olarinoye said the weakening naira had pushed up import costs, while insufficient local supply had tightened product availability and created additional price pressure.

“High depot prices remain a major challenge. Since Nigeria imports a huge chunk of LPG, a weak naira directly translates to more expensive gas at the ports,” he said.

He added that distribution costs have also risen sharply because LPG transportation across the country depends heavily on diesel-powered trucks. With diesel prices elevated, the final cost to retailers has increased.

“Moving LPG across the country depends heavily on diesel-powered trucks, and rising diesel prices continue to inflate the final price retailers pay before selling to consumers,” he said.

Retailers Deny Arbitrary Pricing

Olarinoye insisted that retailers should not be blamed for arbitrary price increases, arguing that competition at the retail end limits excessive mark-ups.

According to him, LPG retailers operate at the last mile, where margins are often narrow and final prices largely reflect procurement costs from depots.

“LPGAR does not support arbitrary pricing. Our members operate at the last mile and are fully aware of consumer frustration,” he said.

His position highlights the structure of Nigeria’s LPG market. Consumers see the final price at neighbourhood gas shops, but the cost build-up begins much earlier — from import exposure and exchange-rate movements to depot pricing, transportation, storage, distribution risks and regulatory compliance.

Policy Relief Eroded by Currency Pressure

Olarinoye described government policy effects on the sector as mixed.

He noted that the removal of VAT on LPG imports initially offered some relief, but the benefit was quickly weakened by naira depreciation and other cost pressures.

He also said petrol subsidy removal had increased demand for LPG, as households and small businesses increasingly turned to gas-powered alternatives. While this shift supports Nigeria’s cleaner-energy transition, it has also placed additional pressure on supply.

To reduce costs, Olarinoye urged the Federal Government to mandate Nigeria LNG and other domestic producers to sell LPG in naira to local off-takers. He also called for stricter regulation of depot operators to prevent hoarding and sudden price hikes.

He further urged investment in infrastructure that can reduce logistics costs, especially storage, transportation and distribution systems.

Safety Concerns as Households Consider Cheaper Alternatives

Olarinoye warned Nigerians against switching to unsafe alternatives such as firewood and charcoal because of rising gas prices.

“People should not compromise safety because of the current hardship,” he said.

His warning is important. When cooking gas becomes expensive, many low-income households return to traditional fuels. That shift carries health and environmental risks, including indoor air pollution, respiratory illness, deforestation and higher carbon emissions.

For Nigeria, therefore, LPG affordability is not only a consumer-price issue. It is also an energy-transition, public-health and environmental question.

Olarinoye said meaningful price relief would depend on exchange-rate stability, improved domestic supply and reduced logistics constraints.

BRANDECONOMY Insight

Cooking Gas Inflation Is Now a Household Energy-Security Problem

The rise in LPG prices exposes a deeper weakness in Nigeria’s household energy economy.

Cooking gas was meant to be the cleaner, safer and more modern alternative to firewood, charcoal and kerosene. But when LPG becomes too expensive, households are pushed back toward dirtier and less efficient fuels. That undermines public health, environmental protection and the country’s clean-energy transition.

The retailers’ argument is credible: last-mile sellers are often blamed for price increases, but the real pressure points sit higher up the value chain — foreign exchange, import dependence, depot pricing, diesel-driven logistics and inadequate domestic supply.

The policy response must therefore go beyond appeals to retailers. Nigeria needs more domestic LPG supply into the local market, naira-based local sales where feasible, stronger depot regulation, better storage infrastructure and more efficient distribution.

The country must also treat LPG as a strategic consumer-energy product. If government wants households to adopt cleaner fuels, it must make the supply chain more stable, transparent and affordable.

The danger is clear: when gas prices rise beyond household budgets, energy poverty deepens. Nigerians may still cook, but they will cook with fuels that damage health, worsen emissions and slow the transition to cleaner living.