The Liquified Petroleum Gas Retailers (LPGAR) has suggested to the Federal Government to establish more local LPG production plants and encourage storage and transportation of the product to avert price hikes.
The Branch National Chairman of LPGAR, Mr Ayobami Olarinoye, made the remarks in an interview with the News Agency of Nigeria (NAN) in Lagos on Friday against the backdrop of the ongoing increase in the price of cooking gas.
According to Olarinoye, the price has been going up in the last four weeks, but retailers have been largely bearing the burden.
“This is why the rise has not been substantially reflected in the retail prices.
“The recent price increase, as well as the expected further price increases, is as the result of further depreciation of the naira in recent time,” he said.
Olarinoye said: “Again, during this period of the year, international prices of LPG usually rise. This is the second major factor leading to the increases in the price.
“The Nigerian LPG market is often priced according to the international market because of the country’s dependent on importation for a substantial amount of LPG she consumes.
“Again, the country’s major supplier, the Nigeria Liquified Natural Gas (NLNG), supplies local marketers, using the international LPG price and US dollar rate.
“So, it is obvious that the price rise is a result of recent changes in the exchange rate and the global market price,” he added.
He said that NLNG had been doing its best but advised that other major operators in the industry could establish LPG production plants and make it available to the local market.
He suggested that if the government could have an arrangement with NLNG and other possible producers to domesticate the pricing of the product, then it would make the product affordable to the consumers.
“Indeed the time is very critical. The price of PMS has risen beyond the purchasing power of the average person.
“Even the price of diesel has started to rise. Again, prices of essential commodities, especially food have skyrocketed.
“It is really a difficult time for the people of this country. As I said earlier if government can work closely with NLNG and LPG importers and provide them with some incentives, then the price can be affordable to Nigerians at this critical time,” Olarinoye explained.
He suggested that NLNG could domesticate its LPG pricing system and increase its local supply.
Olarinoye said that a kilo of gas that usually sold between N500 and N600 now sells within N800 and N900 per kilogramme within Lagos and Ogun states.
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