The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has informed that recent rise in Liquefied Petroleum Gas (LPG) prices is driven by supply constraints and global market pressures.

NALPGAM president, Mr Edu Inyang, who made this known on Sunday in Lagos, attributed the increase to higher depot prices caused by reduced local supply and rising international benchmarks.
Inyangg said lower volumes from the Dangote Refinery had impacted domestic supply, making product access more difficult for marketers.
“Obtaining the product has become increasingly difficult, with allocations no longer as frequent as before,” he said.

According to him, some off-takers are unable to secure supplies for extended periods, while those with access are responding to prevailing demand conditions.
He added that supplies from the Nigeria LNG Ltd. were also coming at higher costs, further pushing up depot prices nationwide.

The NALPGAM president linked the trend to developments in the global energy market, noting that international price movements continued to influence domestic pricing.
“Nigeria is not insulated from global energy shocks. Developments in the international market inevitably affect local LPG prices,” he said.
He noted that reliance on imported inputs and foreign exchange dynamics also contributed to rising costs.

Inyang added that depot operators factor in landing and operational costs, which are reflected in retail prices.
“Private depot operators cannot sell below their landing and operational costs, and this ultimately impacts the final price to consumers,” he said.
He, however, expressed optimism that increased investment in gas infrastructure would improve supply.

“We have experienced similar cycles before. With the right investments, supply will improve and prices will stabilise,” he said, calling for the development of more gas processing plants and greater private sector participation to boost domestic production.
He added that improved output from existing and upcoming gas projects would help stabilise the market and moderate prices.