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Home » Boost local LPG output to stabilise prices, stakeholders urge FG
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Boost local LPG output to stabilise prices, stakeholders urge FG

By The Hope Newspaper31 October 2025No Comments3 Mins Read
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By Akinnodi Francis, Ondo

Stakeholders in the oil and gas sector have urged the Federal Government to boost local LPG production and processing capacity to curb rising cooking gas prices and stabilise domestic supply.

The stakeholders, who spoke in separate interviews with Weekend Hope, said increased investment in local plants, supply chain optimisation and stronger regulatory support were critical to stabilising the domestic LPG market.

Chairman of the Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR), Ayobami Olarinoye, said the Federal Government must ensure compliance among licensed operators and prioritise product availability through better coordination with offtakers and refineries.

He noted that the government should address the price disparity between offtakers and the country’s only functioning private refinery to ease the sourcing challenges faced by retailers.

According to him, “The price is gradually returning to normal. There is noticeable improvement in supply, and the average retail price now ranges between ₦1,200 and ₦1,700 per kilogramme, depending on location and source.”

He stressed that LPG retailers were not responsible for the price hikes, attributing the situation to supply constraints rather than deliberate price manipulation.

A gas retailer in Ondo, Joseph Agu, said Nigeria must urgently expand its local gas infrastructure and channel more product into the domestic market rather than for export.

“The recent spike in cooking gas prices and supply challenges is a wake-up call for Nigeria.

“What was once progress — greater LPG penetration and cleaner cooking — risks being reversed unless decisive, coordinated action is taken,” he noted.

He said that beyond controlling prices, Nigeria needed a system-wide strengthening of production, supply, and distribution, alongside fiscal incentives and social protection measures for vulnerable households.

“With hundreds of millions of Nigerians depending on affordable cooking energy, the stakes are high.

“While domestic LPG production has reportedly reached about 80 per cent of consumption, affordability remains a major challenge,” he stressed.

Another retailer, Akinbolaji Akiniyi, also attributed the recent price surge to reduced supply from major distributors and higher depot prices.

He said, “Sometimes we go days without supplies. When we finally get gas, it is costly, and we have to add a margin or we will run at a loss.”

He appealed to the government to intervene urgently, warning that prolonged scarcity could worsen the already high cost of living.

He, however, noted that Nigeria’s vast natural gas reserves and growing LPG infrastructure offered significant potential for scaling up clean cooking, provided affordability and supply bottlenecks were resolved.

According to a correspondent who monitored the situation, the price of cooking gas ranges between ₦1,300 and ₦1,600 per kilogramme, depending on the location within Ondo.

Some consumers urged the government to sustain efforts to stabilise prices, warning that unless production and infrastructure issues were addressed, LPG — once a clean and affordable cooking fuel — could become a luxury item.

They stressed the need for long-term investment in storage, local production, cylinder manufacturing, and distribution networks to prevent future price shocks

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