Trending Now

Cooking Gas Marketers Raise Alarm Over 75% Price Hike

  • Task NLNG Supply To Other Coastal Terminals Outside Lagos To Reduce Pressure

LAGOS STATE, NIGERIA - Marketers of Liquefied Petroleum Gas (LPG) under the aegis of Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) have raised the alarm over indiscriminate artificial hike in the price of the product by 75 per cent in the last two week.

Speaking to journalists in Lagos on Thursday, Bassey Essien, the Executive Secretary of the association said that within a five-day period, the price of a 20 metric tonnes of LPG which hitherto sold for N3.15m, suddenly increased to N3.5 million and N3.9m respectively.

Bassey Essien argued that a few hours thereafter the price moved to N4.2 million despite the fact that same product has been in the storages of these terminals when price was even sub N3.5 million so why the sudden upsurge?

Bassey Essien posited that the price hike will ultimately dovetail into high prices to the consumers, adding that the consumers will in turn want to blame marketers who unfortunately are also caught up in the web of price hikes.

"At this time of the year in the past, price hikes used to be attributable to winter season,increased demand for heating energy and international price index. 

"This we have consistently questioned why a product in abundance in our country should become such a victim of any slightest issue occurring internationally.

"Efforts to extract the cause of the sudden and hourly price increase from the terminals have not been met with any positive response. 

"At one of the terminals, there was an outright denial of any price increase, however, the price of LPG has been moved from N3.9m to N4.2M. A representative of the company insisted rather that the company had no stock.

"But when asked to explain the sudden price increase to N4.2m when company had no stock, he was evasive,’’ Bassey Essien said. 

Bassey Essien maIntained that it became necessary to react to the current price hike of cooking gas despite the concerted efforts of the government and stakeholders to deepen the usage of LPG in the country.

According to Bassey Essien: "The association is hereby disassociating itself and members from the antics of the current price hike and therefore maintaining that the price increase is not the handiwork of marketers but rather that of the terminal owners, importers and the NLNG. 

"Marketers are equally bemoaning the situation as the development has adversely affected business planning. 

"If the trend is not halted immediately, the price of a 12.5kg cylinder of cooking gas may soon sell for over N6, 000.00 and well out of the purchasing power of the average consumer.

"This brings to question when the issue of product availability will ever be holistically addressed. 

"We cannot deepen the use of LPG if availability of the product is not guaranteed."

Bassey Essien said that there is an urgent need  to reverse the price hike, and calls on the NLNG to flood the market with cooking gas since they have the capacity to do so and increase the frequency with which the vessels deliver LPG from Bonny to the Terminals particularly in the Lagos axis.

Bassey Essien argued that NLNG should supply LPG to other coastal terminals outside Lagos to reduce the inherent pressure on the terminals in the South West and also deploy vessels of smaller capacities to access the coastal terminals if product availability must be achieved.

Bassey Essien urged LPG importers to free the PPMC depot in Lagos for the delivery of NLNG product allocation.

Bassey Essien posted that in the quest to achieve further deepening of LPG usage in the country, NALPGAM has embarked on the campaign of creating awareness and education of the populace, particularly in the rural communities on the safe handling of LPG as the most efficient cooking energy.

In the campaign, the association had given out over 7,000 cylinders with burners to lucky beneficiaries in Lagos, Edo, Oyo and Akwa Ibom States while still mapping out to do the same in other states.

"We thus urge the Government and NLNG to urgently increase the quantity of LPG earmarked for domestic consumption as the present allocation cannot sustain demand.

"NLNG should also work out a more robust delivery logistics so that there will be no supply lacuna. 

"Many terminals are now operational aside those in Lagos and to reduce the pressure on Lagos, the wear and tear of the roads and traffic gridlock in Apapa.

"NLNG should extend their supply logistics to reach terminals in Rivers, Delta, Edo and Cross River states consistently and timely with LPG if the supply situation must improve.

"We cannot suffer in the face of an abundance of a product we are blessed with in Nigeria. If the situation does not abet, we would soon face imminent LPG scarcity," Bassey Essien stated. 

Bassey Essien said that some marketers who had paid for LPG when the price was N3.45m in a particular terminal but were awaiting loading were being intimidated with refund of their money except they agreed to pay the difference in the new price despite having tied down their funds without loading their trucks.

For events coverage, breaking news and advert placement, contact us today or call our hotlines on +2348033599492, +2348022717838.


All rights reserved. This material and any other material on THE NEWS ACCELERATOR NETWORK  should not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from the Editor-In-Chief.

No comments