Gas retailers have issued a warning that the cost of a 12.5kg cooking gas cylinder could potentially reach N18,000 by December if the Federal Government doesn’t intervene to curb the activities of terminal owners.
Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, expressed his concerns to reporters on Sunday. He explained that the price of Liquefied Petroleum Gas (cooking gas) has significantly risen at the terminals, with a sudden increase from the range of N9-N10 million per 20 metric tons to N14 million per 20 metric tons.
Oladapo raised the alarm, stating, “There is an alarming surge in gas prices currently, and I’m afraid that without the Federal Government stepping in to regulate the activities of these terminal owners, prices could escalate to as high as N18 million per metric ton by December. This implies that a 12.5kg cylinder could cost as much as N18,000.”
He further explained that terminal owners are using the excuse of high foreign exchange rates to justify their price hikes, which is causing increased hardship for the general public.
According to Oladapo, there is no justification for this price increase, as the Nigerian Liquefied Natural Gas Limited (NLNG) still supplies the market. He pointed out that the Nigerian National Petroleum Corporation Limited (NNPCL) currently receives 59% of the gas produced by NLNG, and NLNG itself has raised its prices from N6 million to N8 million. The increase in prices, according to Oladapo, is not the fault of retailers but is driven by NLNG and terminal owners.
Oladapo expressed concern about the impact of these rising prices on ordinary citizens, particularly low-income earners, who may no longer be able to afford cooking gas. He mentioned that people are resorting to firewood and charcoal due to the high gas prices.
He also raised questions about promises made by some stakeholders to support the government in improving the quality of life but are now taking actions that contradict those promises.
While terminal owners attributed the price hikes to foreign exchange challenges and international market dynamics, Oladapo and other stakeholders are urging the government to intervene to prevent further price increases and ease the burden on consumers.
