Cooking gas scarcity, price hike bite harder in Lagos, Ogun

•Vendors sell N2,200 per kg, blame depot owners for scarcity

It is a tough time for Lagos and Ogun States residents as scarcity and high cost of Liquified Petroleum Gas (LPG), popularly known as cooking gas, are biting harder.

As of Sunday, some residents were seen moving from one location to another in search of the product as many retail outlets ran out of supply, despite government’s assurance.

For few vendors with the product, the price ranged between N2,000 and N2,300 instead of N1,200; it was sold in early May per kilogramme.

One of the residents in Isheri-Oke, Lagos State, Gbemi Soyemi, said that most of the retail outlets within the vicinity have run out of stock, except two retailers that were selling at N2,200 per kilogramme.

Another resident, Mrs Kikelomo Ajayi, said she bought N2,000 on Friday at Ikosi Ketu.

For those that live near gas depots, they bought it at N1,900 per kg.

A resident in Mowe, Ogun State, who identified herself simply as Mummy Gloria, explained that all retail outlets in the neighbourhood sold at N2,200 on Saturday, noting that the price may rise if there is no supply as from today.

She alleged that many residents have returned to charcoal as an alternative fuel, triggering a rise in charcoal price.

“The most annoying thing is that the price of firewood is also going up due to sudden demand,” she said.

Speaking with the Nigerian Tribune on Sunday, President, Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM), Iyang Edu, who decried the situation, said that all the gains of decades of gas initiative by the government are being eroded by the cooking gas’ scarcity and price hike.

He noted that the majority of residents are returning to firewood and charcoal as alternative fuels.

According to him, the shortfall in cooking gas supply, coupled with the associated price hike is biting Nigerians harder.

Edu confirmed that the Nigerian LNG has not increased price, alleging that the outrageous price of the product is coming from depot owners.

READ ALSO: Nigerians may pay more for cooking gas as supply situation grows worse

“One of the depot owners confirmed that they received product but distributed it to their plant or stations only. If they released the product as they received it, there won’t be scarcity and unnecessary price hike,” he said.

Besides, he wants government to take up depot owners on how they sold or distributed the product they received.

He stressed that one of the issues to be attended to is that local production could not meet demand.

He alleged that people with the import licences cannot even bring in the product because of fear of Dangote Refinery.

As it is, Edu said the best option is to continue to engage government so that NLNG can bring in the product.

He said the association has engaged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) twice on the issue, but the latter kept assuring supply of product.

“If the price keeps going up, all the gains recorded in the last few years would be impacted. This also has health and environmental implications,” he said.

A source among the depot owners, who did not want his name in print, said the issue of LPG price hike has to do with demand and supply.

He said the demand for LPG at this particular period of the year is more than supply, adding that whenever there is a distortion in the supply chain, it will take time for the situation to normalise.

He blamed the Middle East crisis for the distortion in LPG market, adding that LPG is a deregulated business like other hydrocarbons (petrol, diesel, and kerosene).

When contacted, Spokesman for the Minister of State Petroleum Resources (Gas), Louis Ibah, said the ban on LPG  export is in place and enforced by the NMDPRA.

He dismissed the assertion of claim that locally produced LPG is being exported at the expense of domestic supply, stressing that no producer is currently exporting LPG designated for the Nigerian market.

‎”Note that the ban on LPG exports announced by the Minister, Rt. Hon. Ekperikpe Ekpo, remains firmly in place and is being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

“Let me also state that marketers are stepping up efforts to resolve the crisis and have committed to importing larger volumes of LPG to ensure that supply meets demand of domestic users.

“The other good news is that the new Seplat gas facility is expected to begin delivering LPG to the domestic market by July, and this implies we can expect a significant improvement in supply soon,” Ibah said

According to him, Nigerians can be assured that the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, is working tirelessly to ensure the sustained availability of gas for domestic cooking, industrial activities, and power generation across the country.