The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has attributed the hike in the price of cooking gas to fluctuations in the exchange rate, multiple taxes and scarcity of foreign exchange, among others.
Bassey Essien, executive secretary, NALPGAM, said this in an interview on Sunday in Lagos.
Mr Essein also said another issue was the inability of marketers to frequently import Liquified Natural Gas (LPG), known as cooking gas, to boost the domestic supply.
He said although the price of cooking gas was still high compared to the price sold last year, it had remained stable since the beginning of the year.
Mr Essien said, “The source of LPG for some time now has been predominantly from Nigeria LNG and has never met the demands.
“This is because of the supply-demand gap and market dynamics. All these work in concert to affect the price. Hence, the price goes up.
“The inability to import LPG as frequently as before and to argue the inadequate domestic supply is due to fx, exchange rate and taxes are major factors.”
Also, Oladapo Olatunbosun, NALPGAM president, said that the government could put in place incentives to encourage exploration.
Mr Olatunbosun said that foreign and local investors could be encouraged to explore and invest more in the gas business.
He said that was necessary because Nigeria has abundant supply in the soil and underwater.
He said, “The price is coming down gradually. The only solution to bring costs down significantly is to improve supply.
“Why the price is a major issue is because the purchasing power of the masses is low.
However, a correspondent who monitored some of the cooking gas retailers in Epe gathered that cooking gas prices have been relatively stable since October 2022.
A gas operator at Enyo LPG Station in Epe, who preferred anonymity, said refilling a 12.5 kg cylinder costs N9,400.
He said the price had been stable for months compared to early 2022, where it was sold between N10,500 to N12,000 for 12.5kg.
Another retailer in Epe, Funmi Omole, said the price of a 12kg cylinder of cooking gas was between N7,200 to N8,900 per 12.5kg around February 2022.
Another consumer in Lagos, who referred to herself as Glory, said she refilled her 12.5kg cylinder with N9,550 on April 11 in Somolu.
(NAN)
