Marketers warn that price of LPG could increase by December

Marketers of Liquefied Petroleum Gas, otherwise known as cooking gas, have warned that the 12.5kg of cooking gas, which currently sells between N7, 500 and N8, 000 might increase to N10, 000 before December if the current crisis in the sector is not addressed.

This was disclosed by the Executive Secretary of the National Association of LPG Marketers (NALPGAM), Mr Bassey Essien, during the weekly e-discourse organised by a leading Pan-African forum, Platforms Africa.

Essien insisted that the Federal Government needed to review the recently introduced import charges and Value Added Tax or else, the price of cooking gas may as well get to N10, 000 for a 12.5kg cylinder.

The marketers have expressed concerns over the supply shortage which is rocking the sector and has led to recent series of increases in the price of the commodity.

The rise in prices of gas has driven more Nigerians to seek alternative sources of fuel like charcoal, firewood, sawdust, among other energy sources whose prices have started rising as well.

“The price has risen to N7, 500 and N8, 000. The skyrocketing price of gas is our fear and what we are trying to avoid. Early in the year a 20-metric ton of gas was selling for below N5m but today, the same tonnage sells for N10.2m. As long as there is that supply shortage, the available quantity and the dynamics of supply-demand will keep pushing the price higher.”

Lamenting poor patronage of NALPGAM by customers due to the high price, Essien said the association was concerned that more Nigerians were being forced to return to coal, sawdust, kerosene, and other dirty fuel.

The NALPGAM Secretary said despite the current challenges, the association was discussing with the government, stakeholders, producers and importers to see how the situation could be addressed in addition to trying to persuade marketers not to take advantage of the crisis to inflict more pains on citizens by increasing the cost of gas in their locations.

NALPGAM secretary also expressed worry over the gradual rise in the cost of cylinders over the years, maintaining that all the raw materials used by the two-cylinder manufacturing plants in the country were imported.

He said despite Nigeria’s over 180 million population, the country barely had up to 10 million cylinders in circulation amid substandard cylinders in circulation.

Nairametrics