(NIGERIA) – Gas retailers have voiced concerns over the possibility of a significant price hike for 12.5kg cooking gas cylinders in Nigeria.
They warn that unless the Federal Government takes action to regulate terminal owners’ activities, the cost could reach as high as N18,000 per cylinder by December.
Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, expressed his dismay at the sharp increase in the price of liquefied petroleum gas (LPG), commonly known as cooking gas, at terminals.
The price has surged from approximately N9-N10 million per 20 metric tons to N14 million per 20 metric tons.
Gas retailers accuse terminal owners of forex rate exploitation
Oladapo accused terminal owners of exploiting high foreign exchange rates as an excuse to raise gas prices, resulting in increased financial hardship for the public.
He emphasized that without government intervention, the price could escalate to N18 million per metric ton by December, which would translate to a 12.5kg cylinder costing N18,000.
He argued that the price hike lacked justification, especially since the Nigerian Liquefied Natural Gas Limited (NLNG) continues to supply the market with gas.
Oladapo pointed out that the NLNG had raised its prices from N6 million to N8 million, prompting the Nigerian National Petroleum Corporation Limited (NNPCL) and terminal owners to follow suit, pushing prices up to N14 million.
Oladapo expressed frustration that the price increases were beyond the control of retailers, squarely placing the blame on NLNG and terminal owners.
He noted that in just one week, the price of 1kg of gas at terminals had surged from N800 to N1,200, and without intervention, it could reach N1,500 by December.
The President of the Nigerian Association of Liquefied Petroleum Gas Marketers also highlighted the economic challenges faced by minimum wage earners due to these price hikes, leading to a resurgence in the use of firewood and charcoal as alternatives to cooking gas.
Oladapo questioned the commitments made by terminal owners to collaborate with the government to improve citizens’ lives, given the lack of tangible palliatives or donations.
The surge in cooking gas prices was initially reported in August, with 12.5kg cylinder prices reaching as high as N10,000.
While representatives of gas terminal owners attributed the price hike to forex challenges and rising international crude oil prices, one spokesperson declined to comment on the landing cost.
