Marketers have warned that the price of 12.5kg cooking gas could increase to N10, 000 by December.
Gatekeepers News reports that Marketers of Liquefied Petroleum Gas, otherwise known as cooking gas, have warned that the 12.5kg of cooking gas might increase to N10, 000 before December if the current crisis in the sector is not addressed.
The rise in prices of gas which currently sells between N7, 500 and N8, 000 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 marketers have lamented the supply shortage which is rocking the sector and has led to recent series of increases in the price of the commodity.
The Executive Secretary of the National Association of LPG Marketers (NALPGAM), Bassey Essien made this known during the weekly e-discourse organised by a leading Pan-African forum, Platforms Africa
Essien stressed that the Federal Government of Nigeria needs 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.
He stated that “Today (Saturday), 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.”
While lamenting poor patronage of NALPGAM by customers due to the high price, Essien noted that the association was concerned that more citizens were being forced to return to coal, sawdust, kerosene, and other dirty fuel as “the price of the cooking gas has suddenly gone up.”
He added that the association was discussing with the government, stakeholders, producers, and importers to see how the situation could be addressed.
The NALPGAM Secretary, therefore, persuaded marketers not to take advantage of the crisis to inflict more pain on citizens by increasing the cost of gas in their locations though they are equally expending huge cost to have cooking gas at their locations.
Essien also expressed worry over the gradual surge 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.
According to him, despite Nigeria’s over 180 million population, the country barely had up to 10 million cylinders in circulation amid substandard cylinders in circulation.
Essien said, “The cylinder ownership structure in the country ensures that owners are in charge of their cylinders. Cylinders expire on the 15th year of usage from the manufacturing date. Because of the high replacement cost, consumers buy what they can afford. This has equally encouraged the proliferation of substandard cylinders in circulation. The regulators are working hard to monitor the standard of cylinders coming into the country.
“The progress in-cylinder acquisition still needs government input to ensure that the cost of materials for cylinder production get the necessary exemption from duties but however the state of our local currency still remains a major problem.”
