Gas retailers are sounding the alarm, cautioning that the price of a 12.5kg cooking gas cylinder may skyrocket to N18,000 by December if the Federal Government does not take swift action to regulate the activities of terminal owners.
Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers, disclosed this during an interview on Sunday.
He revealed that the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has increased substantially at terminals.
The cost has surged from a range of N9-N10 million per 20 metric tons to an alarming N14 million per 20 metric tons.
Olatunbosun warned, “There is an outrageous surge in gas prices happening right now, and I am apprehensive that if the Federal Government fails to intervene and oversee the activities of these terminal owners, prices could skyrocket to as high as N18 million per metric ton by December. This would mean that a 12.5kg cylinder could cost as much as N18,000.”
According to him, terminal owners are using the excuse of high foreign exchange rates to justify their price increases, ultimately adding to the burden of the masses.
Olatunbosun however stated that there is no justifiable reason for this price hike, as the Nigerian Liquefied Natural Gas Limited (NLNG) continues to supply the market.
He explained, “NNPCL currently purchases 59 percent of the gas produced by NLNG, even though NLNG has raised its prices from N6 million to N8 million. Now, due to NLNG’s price hike, NNPCL and terminal owners have pushed prices to N14 million.”
He also pointed out that the impending price increase is not the fault of retailers but rather lies with NLNG and terminal owners.
He revealed that just last week, gas was selling at N800 per kilogram at the terminal, but it has now risen to N1,200 and could potentially reach N1,500 by December if immediate action is not taken.
Olatunbosun lamented, “Now, the average person will struggle to afford gas. How many minimum wage earners can afford gas now? People are resorting to firewood and charcoal. What is surprising is that they met with President Tinubu last week and pledged to collaborate with his administration to improve lives. Now, they have gone back on their word. Where are the promised palliatives and buses? We have not seen anything.”
