As Nigerians grapple with rising cooking gas prices, the Liquefied Petroleum Gas Retailers (LPGAR) have urged local producers to prioritise domestic supply before exporting.
Promise Ajujumbu, the public relations officer at LPGAR, Nyanya Branch, made the call during an interview on Sunday in Abuja.
Mr Ajujumbu attributed the recent surge in LPG prices to global market pressures and local supply challenges.
Cooking gas is currently being sold at N2, 000 per kg by roadside retailers, while major marketers, such as NIPCO, sell at N1, 600 per kg.
Consumers had expressed worry and dissatisfaction about the hardship caused by the recent development, and urged the federal government to intervene to mitigate the effects.
Mr Ajujumbu said inadequate local supply and rising logistics costs due to the global energy crisis and market pressures were worsening the situation, pushing up the cost of cooking gas nationwide.
He alleged that there were concerns within the industry that some top local LPG producers were not supplying sufficient volumes to the domestic market.
“The global energy crisis has played a role in the increase in LPG prices; local factors are also contributing to the problem.
“There are concerns that some local producers may be prioritising exports because of better returns, and this is affecting product availability in the domestic market.
“Government and key industry players need to work together to ensure adequate supply to the local market and stabilise prices for consumers,” he said.
He said the supply shortfall had significantly increased costs for retailers, noting that the price of LPG had risen from about N900, 000 per tonne before the current scarcity to about N1.7 million per tonne.
“The local market should be adequately supplied before exports are considered.
“The high price is largely due to sourcing challenges, while the increase in diesel prices has also pushed up transportation and distribution costs, as diesel is widely used in the supply chain,” he said.
Reacting to the development, Louis Ibah, the spokesman for the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, dismissed claims that locally produced LPG was being exported at the expense of domestic supply.
Mr Ibah said no producer was currently exporting LPG meant for the Nigerian market.
He added that the ban on LPG exports announced by the minister remained in force and was being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
He said marketers had also intensified efforts to boost supply and had committed to importing additional volumes of LPG to meet growing domestic demand.
According to him, the new Seplat gas facility is expected to commence LPG supply to the domestic market in July, a development that will significantly improve product availability nationwide.
(NAN)
