NLNG Blames Marketers for Cooking Gas Price Surge

Nigeria LNG Limited (NLNG) has accused certain marketers of contributing to the significant increase in cooking gas prices by purchasing liquefied petroleum gas (LPG) from the company at prices between N800 and N900 per kilogram and selling it for as high as N2,400/kg in the retail market. During a media briefing in Lagos, Managing Director and Chief Executive Officer Adeleye Falade stated that the price surge was due to supply shortages and artificial scarcity rather than NLNG's pricing.

He noted that while NLNG sold LPG at N800 to N900/kg, the recommended retail price by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should be between N1,000 and N1,200/kg. Falade revealed that investigations showed some buyers were stockpiling LPG instead of distributing it, creating artificial scarcity.

NLNG has engaged a major consulting firm to assess its off-takers' distribution capabilities, discovering that some were not selling the product to retailers immediately, contributing to the price increase.