Cooking gas marketers say the price is now a concern
The rising price of cooking gas is causing consternation among marketers across the country.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) announced this at a symposium on Wednesday.
Mr Nosa Ogieva-Okunbor, President of NALPGAM, stated this while speaking at the organization’s 34th Annual General Meeting (AGM) and Symposium in Lagos.
End users have complained that the price of 12.5kg of cooking gas has risen from N3,200 a few months ago to around N6,000 in some parts of the country.
According to Ogieva-Okunbor, LPG consumption in Nigeria has increased from 550,000 Metric Tonnes in 2017 to approximately 1.2 million Metric Tonnes in 2020, owing to NALPGAM members’ investments in LPG plants.
“However, despite efforts to increase the availability of cooking gas in the country, the industry is concerned about the product’s price. If the trend is not addressed and a long-term solution is not proposed, all of the gains made in raising consumption to the current modest level will be reversed.
“The product’s high cost, combined with people’s dwindling purchasing power, would only result in a return to the use of readily available charcoal and firewood, with the attendant negative environmental and health consequences.”
NALPGAM, according to Ogieva-Okunbor, is working with relevant government agencies and stakeholders to develop robust policies for the full domestication of LPG.
He stated that this would go a long way toward ensuring price stability and product availability in order to protect the interests of consumers and investors in the LPG industry.
Ogieva-Okunbor added that the association was also working to improve safety in the selling and distribution of LPG across the country in order to restore consumer confidence.
Mr Sergius Ogun, Chairman of the House of Representatives Ad-hoc Committee on Relocation of Tank Farms from Residential Areas, also spoke, stating that the Petroleum Industry Act (PIA) would help increase domestic LPG supply.
According to Ogun, the recently signed Act by President Muhammadu Buhari requires operators in the gas sector to supply the domestic gas market.