KEY POINTS

• The introduction of taxes on petroleum trucks by Lagos State has created obstacles for LPG loading operations at Dangote Refinery.
• The decreasing LPG prices starting from December 2024 could face challenges due to supply interruptions.
• The problem may lead to a cooking gas shortage according to the warning from NALPGAM.

Members of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) highlight that Lagos State Government charges which hinder petroleum products from being extracted at Dangote Refinery.

According to NALPGAM Nigeria might experience an acute cooking gas shortage because of the current situation.

Truck drivers boycott Dangote refinery

Dangote Refinery has experienced continuous loading halt since February 22, 2025 because NALPGAM identifies it as revenue agencies levying excessive charges and harassing tanker drivers.

According to the association tanker drivers have halted activity at the refinery due to excessive fees which leads to interrupted supply chain of Liquefied Petroleum Gas (LPG).

The comment published as Looming LPG Scarcity calls upon both Lagos State Government together with national institutions to protect the market from increasing LPG shortages.

The statement emphasized that the refinery boycott by truck drivers due to extortions will lead to an immediate nationwide cooking gas shortage unless the government resolves this issue now.

The ongoing strike threatens to move from Lagos to other states across the nation while damaging an already fragile economy according to their warning.

LPG prices and market stability at risk

The cost of LPG entered a declining phase starting from December 2024 until Dangote Refinery introduced itself to the domestic market. The price per 20MT truck dropped below N24 million at that time. The advent of Dangote Refinery in the domestic LPG market created a stabilized supply which brought 20MT truck prices down to N16 million.

NALPGAM recognized the beneficial outcome of Dangote’s supply operations because these actions compelled the remaining LPG producers to lower their prices thus enabling Nigerian homes to access affordable cooking gas.

NALPGAM expresses concern that the levies introduced by Lagos State will reverse the current gains by creating shortages and rising costs.

Under this current pattern every single household might soon reach an affordable LPG buying capacity. New developments in Lagos State present a threat to the LPG advances achieved since if urgent actions are not taken then a looming cooking gas shortage is expected according to the statement.

The LPG distribution will encounter additional disturbances unless the Minister of State for Petroleum Resources (Gas) and the Minister of State for Petroleum Resources (Oil) intervene promptly.