The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), has disclosed that the current rise in cooking gas price will remain the same if stringent measures are not put in place to supervise the runnings of Liquefied Petroleum Gas (LPG) Terminal Owners and Off Takers.
The disclosure was made today (November 15) by Mr Bassey Essien, the Executive Secretary of NALPGAM while speaking to the News Agency of Nigeria (NAN).
The price of cooking gas which was initially N2, 600 has gone up to N4, 500 in retail outlets, a situation which Essien said the Nigerian Liquefied Natural Gas (NLNG) vessel had tried to subdue by supplying sufficient gas to two terminals in Lagos on November 13.
He explained that the move was in line with the Federal Government’s approval for the allocation of about 350,000MT of Gas per annum for local consumption through the NLNG.
Several gas terminals benefitted from the distribution which according to Essien ought to have been sold to consumers at the normal price but “We noticed recently that gas delivered to terminals/off-takers sold at N3.2 million per 20 MT a week ago suddenly jumped to between N4 million and N4. 3 million per 20MT at the terminals.
“This singular action has taken cooking gas beyond the reach of ordinary Nigerians who are forced to pay a higher price for a product that the price structure from NLNG has not significantly changed.
“We therefore, dissociate our association (NALPGAM) from such exploitative acts of the terminals who are taking the industry and stakeholders for granted,’’ he said.
According to Essien, the inflation of the price of cooking gas impedes part of the Federal Government plans in reforming the Nations gas sector.
A good number of Nigerians have fallen back to using kerosene and firewood, a move which Essien describes as wrong due to its adverse health damage.
“A filling station which was selling 300 litres of kerosene a week has seen its sales increased to about 6,000 litres because people who cannot afford gas due to the increment are going back to kerosene.
“This has so many negative effects on the economy, especially as food sellers would have to increase the prices of their food or reduce the quantity not to run at a loss,” he said.