The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has raised concerns over levies imposed by the Lagos State Government, stating that these charges are discouraging its members from accessing the Dangote Petroleum Refinery to lift Liquefied Petroleum Gas (LPG).
Lagos State Levies Disrupting LPG Supply
In a bid to increase revenue, the Lagos State Government has enforced levies on petroleum product trucks, including LPG tankers, that operate within the state. According to NALPGAM, these charges have severely disrupted loading activities at Dangote Refinery, causing a standstill since Saturday, February 22, 2025.
Potential LPG Scarcity Looms
In a statement titled ‘Looming LPG Scarcity’, NALPGAM warned that if the excessive fees persist, LPG truck drivers will continue their boycott of the refinery, leading to a nationwide cooking gas shortage. The association has urged the Lagos State Government, the Minister of State for Petroleum Resources (Gas), and the Minister of State for Petroleum Resources (Oil) to intervene immediately.
NALPGAM emphasized that government agencies must halt the harassment and illegal fee collection targeting tanker drivers. The ongoing strike affecting LPG loading terminals in Lagos could extend to other states, with dire economic and social consequences if not addressed urgently.
LPG Prices on a Decline Since December 2024
The association highlighted that LPG prices have been steadily decreasing since December 2024, when a 20MT truck of cooking gas peaked at over N24 million, creating widespread panic among marketers and consumers.
“There were fears that many Nigerians would struggle to afford LPG, leading to concerns over a bleak festive season,” NALPGAM stated.
When retail prices soared to nearly N2,000 per kg, NALPGAM engaged the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, seeking a resolution. Following the Minister’s intervention, prices gradually dropped, preventing a shift to harmful cooking alternatives that could pose significant health risks.
Dangote Refinery’s Role in Market Stability
With the Dangote Refinery entering the domestic LPG supply chain, market stability has improved, ensuring a consistent supply since December 2024. The refinery’s impact has led to a price reduction from N24 million to approximately N16 million per 20MT truck, benefiting Lagos and other states. This competition has also forced other LPG suppliers to lower their prices, making cooking gas more accessible to households nationwide.
Call for Immediate Government Intervention
While the entrance of Dangote Refinery into the LPG market has been a relief, recent developments in Lagos State threaten to reverse these gains. NALPGAM warns that if the situation remains unresolved, an LPG shortage could grip the nation, making it difficult for Nigerians to afford cooking gas. The association calls for urgent intervention to prevent a potential crisis and ensure that the affordability and availability of LPG remain stable.
Source: Dangote Refinery Official Site
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