as retailers have issued a cautionary note, suggesting that the cost of a 12.5kg cooking gas cylinder may soar to N18,000 by December unless the Federal Government intervenes to curb the activities of terminal owners.
Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, expressed concern over the alarming increase in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, particularly at gas terminals. He revealed that the price surged abruptly from around N9-N10 million per 20 metric tons to N14 million per 20 metric tons.
Oladapo stated, “There is a ridiculous hike in gas prices going on right now, and I am afraid that if the Federal Government does not step in to checkmate the activities of these terminal owners, prices could reach as high as N18 million per metric ton by December. This means that a 12.5kg cylinder could cost as much as N18,000.”
He went on to argue that terminal owners were unjustifiably taking advantage of higher foreign exchange rates to raise prices, causing undue suffering for the general populace. Oladapo emphasized that there was no valid rationale for this price increase, as the Nigerian Liquefied Natural Gas Limited continued to supply the market.
He explained, “NNPCL currently takes 59 per cent of the gas produced by NLNG, although NLNG has also increased its price from N6 million to N8 million. Now, because NLNG has increased the price, NNPCL and terminal owners have increased the price to N14 million.”
Oladapo placed the blame for the impending price hike squarely on NLNG and terminal owners, emphasizing that it was not the fault of retailers. He further revealed that the cost of 1kg of gas had already risen from N800 to N1,200 in the terminal, and it could potentially reach N1,500 by December if unchecked.
The President of the Nigerian Association of Liquefied Petroleum Gas Marketers expressed concerns that the soaring prices would make it difficult for ordinary citizens to afford gas, potentially pushing many towards alternative cooking methods such as firewood and charcoal.
He also raised questions about promises made by gas industry stakeholders to improve the situation, given the recent visit to President Tinubu. He questioned the whereabouts of the pledged palliatives and buses, which had yet to materialize.
It’s important to note that an anticipated hike in cooking gas prices was reported in August, and since then, prices have continued to rise, with a 12.5kg cylinder reaching as high as N10,000.
While gas terminal owners did not have a visible association, representatives from NavGas and Nipco Plc attributed the price increases to factors such as foreign exchange rates and fluctuations in the international crude oil market.
