Gas retailers in Nigeria are concerned that the cost of a 12.5kg cooking gas cylinder may rise to N18,000 by December if the Federal Government doesn’t control the actions of terminal owners.
The President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, explained that the price of cooking gas, also known as Liquefied Petroleum Gas (LPG), has sharply increased at terminals.
Previously, it was between N9 and N10 million for 20 metric tons, but it has now jumped to N14 million for the same quantity.
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President Tinubu needs to intervene
Olatunbosun worries that if the Federal Government doesn’t intervene to regulate these terminal owners, the price could skyrocket to as much as N18 million per metric ton by December. This would mean a 12.5kg cooking gas cylinder could cost as much as N18,000.
He believes that terminal owners are using the excuse of high foreign exchange rates to justify raising prices, causing a lot of hardship for the general population.
Olatunbosun argues that there’s no valid reason for this price increase since the Nigerian Liquefied Natural Gas Limited (NLNG) still supplies the market with gas.
Why is the price increasing?
He points out that the NLNG has also increased its prices from N6 million to N8 million, and as a result, both the NNPCL (Nigerian National Petroleum Corporation Limited) and terminal owners have raised their prices to N14 million.
The price hikes are not the retailers’ fault, according to Olatunbosun, but rather the result of the NLNG and terminal owners increasing their prices.
He highlights that even NNPCL is using the excuse of privatization to raise prices. He also mentions that the cost of gas at terminals has already increased from N800 to N1,200 per 1kg and could rise to N1,500 by December if nothing is done to address the situation.
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Gas price expected to rise in coming weeks – Marketers
In another news, Gas consumers face challenging times as market insiders suggest that prices will rise in the coming week.
Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, has advised consumers to prepare for impending price hikes.
He attributed this move to multiple factors, including escalating international prices, elevated tax rates, vessel costs, forex scarcity, and the devaluation of the local currency, naira.
