The Nigerian National Petroleum Company Limited (NNPCL) has attributed the recent cooking gas price hike across the country to temporary disruptions caused by the strike action of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The strike, which halted operations for several days, reportedly led to shortages in supply and created room for opportunistic retailers to raise prices.
NNPC explains cause of temporary cooking gas price hike
Addressing journalists after meeting with President Bola Tinubu at the State House in Abuja, the Group Chief Executive Officer of NNPCL, Bayo Ojulari, explained that the cooking gas price hike was not a result of market fundamentals but rather a short-term artificial spike.
“The increase you saw was relatively artificial because, during the strike period, movement and loading were delayed by about two to three days,” Ojulari stated.
“This short delay had a ripple effect on supply, creating a temporary gap that drove prices up. Now that operations have resumed, we expect the situation to normalize.”
According to the NNPCL chief, gas production and distribution were disrupted due to the shutdown of several critical facilities during the PENGASSAN industrial action.
He assured consumers that as supply chains stabilize, the cooking gas price hike will ease in the coming weeks.
Ojulari further disclosed that the recent strike was triggered by disputes surrounding the dismissal of Nigerian workers at the Dangote Petroleum Refinery, which prompted union members to withdraw their services nationwide.
The industrial action, which lasted several days, was suspended on October 1 after the intervention of the Federal Government.
Retailers exploited the strike to inflate prices
Ojulari accused certain marketers and retailers of taking advantage of the temporary shortage to inflate the prices of liquefied petroleum gas (LPG).
He described the move as “opportunistic” and unpatriotic, stressing that such behavior undermines consumer confidence in the downstream energy market.
“In Nigeria, whenever there is a slight disruption, some people take advantage of the situation to hike prices,” he said.
“We noticed that even with available stock, some dealers increased prices unnecessarily, blaming it on logistics issues. But as supply improves, the market will naturally correct itself.”
He reiterated NNPCL’s commitment to stabilizing energy prices and ensuring adequate availability of LPG for domestic use.
“Our expectation is that now that things are back to normal, the prices should return to what they were before the strike,” he added.
Federal intervention brings relief to the energy market
The Minister of Labour and Employment, Muhammad Dingyadi, alongside the National Security Adviser, Nuhu Ribadu, played a crucial role in resolving the dispute between the Dangote Group and PENGASSAN.
Following government intervention, the refinery management reportedly agreed to redeploy affected staff, leading to the suspension of the strike and restoration of operations.
This development has begun to ease the lingering effects of the cooking gas price hike, with distribution depots resuming full operations and marketers restocking their cylinders.
Early reports from Lagos, Port Harcourt, and Abuja indicate that gas supplies are gradually returning to normal levels.
Ojulari commended the swift response of the Federal Government and expressed optimism that the energy market would stabilize fully before mid-October.
He also assured Nigerians that the company remains committed to boosting domestic gas supply through investments in infrastructure and partnerships with private sector operators.
Nigerians call for stronger regulation amid recurring gas price hikes
Meanwhile, energy analysts and consumer rights advocates have called on regulatory agencies to implement stricter monitoring mechanisms to prevent profiteering and arbitrary price hikes during industrial disruptions.
According to industry expert Adetunji Alao, “The cooking gas price hike has become a recurring problem each time there’s an operational delay or labour dispute.
What we need is a robust market monitoring framework that can prevent exploitation while encouraging competition and efficiency.”
Several households across the country have expressed relief over NNPCL’s assurance that prices will soon drop, as many struggled with the recent surge that pushed retail rates above ₦1,500 per kilogram in some cities.
NNPCL targets stable energy supply through local production
Ojulari also emphasized NNPCL’s long-term plan to reduce dependence on imported gas by expanding domestic processing and distribution facilities.
The company, he said, is already investing in several joint ventures aimed at improving gas infrastructure and ensuring energy affordability for Nigerian households.
He noted, “The future of Nigeria’s energy sector lies in domestic utilization. We are pushing for more investments in gas infrastructure so that Nigerians can benefit from stable supply and reduced prices.”
Energy experts agree that consistent local production and efficient distribution networks remain key to solving the cooking gas price hike challenge and achieving energy security in Nigeria.
Outlook: Relief in sight for Nigerian households
With operations back to normal and PENGASSAN’s strike officially suspended, NNPCL says it expects full price stabilization in the coming weeks.
Market watchers also predict that as supply improves, competition among retailers will help drive prices back to pre-strike levels.
The NNPCL’s reassurance provides a glimmer of hope for millions of Nigerian households burdened by high energy costs.
However, analysts caution that sustained government intervention and effective market regulation will be essential to preventing future cooking gas price hikes and ensuring a reliable energy future for the nation.
