Major oil marketers in Nigeria have called for a concerted effort and policies to compel Nigerians to shift to alternative sources of energy in the face of rising energy costs. In particular the marketers said efforts should be geared towards making Liquified Petroleum Gas, LPG, called cooking gas available.
This is coming amid growing concerns over the skyrocketing price of cooking gas as LEADERSHIP reports that a kilogram of cooking gas is now being sold for between N1,000 and N1,200 across the country. A supply disruption and scarcity of the product are believed to be driving the surge in prices.
In Lagos State 12.5 kilograms of cooking gas is sold for N12,000 at some retail stations. In neighboring Ogun State a kilogram of gas is priced between N1,150 and N1,200, while in most case some retail stations have run out of stock, leaving many consumers in a lurch. Kano also experiences increased prices with some vendors selling a kilogram for N880 or even higher, compared to the previous price of N750.
Marketers attribute the price hike to the high cost of transportation, which is influenced by the rising cost of diesel while the weak naira, limited bulk storage, and scattered terminals.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALGAM) President, Oladapo Olatunbosun, has warned that if the government doesn’t intervene promptly, the price of a 12.5kg cooking gas cylinder could reach as high as N18,000.
He emphasized that concerted efforts are needed to ensure the product remains affordable for all Nigerians. The situation is now further exacerbated after the government of Niger announced that all exports of LPG, have been suspended until further notice.
Niamey said domestic production should be used to meet domestic demand, according to a Reuters report. “If there is a surplus, export authorisation can be requested.”
Prior to this development, Niger transfers its excess natural gas to its neighbour Nigeria. While the government is working with the Nigerian Liquefied Natural Gas Ltd (NLNG) to ramp up supply, deregulation remains a significant challenge.
However, the Managing Director and Chief Executive Officer of the NLNG, Dr. Philip Mshelbila, said that a deliberate investment that will unlock the nation’s gas potentials will go a long way in tapping opportunities offered by the energy transition.
