EFFORTS by the Federal Government to promote consumption of cooking gas may be under threat as Nigerians are groaning due to hike in price of liquefied petroleum gas (LPG) otherwise called cooking gas in the market.
Investigations by the Tribune Online on Tuesday attributed the hike in price of cooking gas to increase in price from the Bonny terminal.
Prior to the Yuletide season, 12.5kg of cooking gas was selling at an average price of N3000 but currently it is selling at an average price of N4200 per 12.5kg cylinder.
The Executive Secretary, National Association of LPG Marketers (NALPGAM), Mr. Bassey Essien, told Nigerian Tribune that the reason for the hike was due to shortage in supply.
He said prior to Yuletide season in December, 2016, a tanker of LPG was being sold at N4.2million but in December, a tanker was sold at N6million from the Bonny terminal.
“We have been on the issue of pricing for a while now. They are selling to us from the Bonny terminal at the international price when we are actually consuming it locally,” he said.
The Federal Government had instructed the NLNG to dedicate 250,000 tonnes for domestic market, but the issue of pricing has always been subjected to controversy.
NLNG commenced supply of LPG to the Nigerian domestic market in 2007. That first NLNG LPG cargo into the domestic market was discharged at Apapa jetty on December 26.
At the moment, NLNG has signed Sales and Purchase Agreements (SPAs) with 15 off-takers (all Nigerian companies) in which the company is committed to deliver up to 250,000 tonnes of LPG into the Nigerian market annually, in line with the commitment to grow the domestic LPG market in Nigeria.
The LPG Domestic Supply scheme, which has been an outstanding success, has led to a significant reduction in the end-user price of LPG in the domestic market.
However, the issue of pricing is still an issue the regulators may have to look into to address the perennial scarcity that Nigerians face annually.
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