Gas retailers seek FG's intervention as price of 12.5kg gas hits ₦18,000

Marketers of liquefied petroleum gas (LPG) have alerted Nigerians of an impending increment in the price of the commodity due to the activities of terminal owners.

The Gas retailers who called on the FG to intervene in the process also warned of the possibility of selling 12.5kg cooking gas for ₦18,000 by December due to a sudden spike from ₦9-₦10m per 20 metric tons to ₦14m per 20 metric tons.

While speaking with The PUNCH, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, on Sunday, gave reasons for the unusual spike in the prices of LPG.

“There is a ridiculous hike in gas prices going on right now, and I am afraid that if the Federal Government does not step in to checkmate the activities of these terminal owners, price could reach as high as ₦18m per metric tons by December. This means that a 12.5kg could go as high as ₦18,000.”

Oladapo blamed terminal owners for the exorbitant increment and said most of them were “hiding under the guise of high foreign exchange to increase price to further increase the suffering of the masses.”

Speaking further, he said although the major supplier, the Nigerian Liquefied Natural Gas Ltd (NLNG) has also increased its price from ₦6 million to ₦8 million, 59% of the gas produced by NLNG goes to the Nigerian National Petroleum Company Limited (NNPCL). He also revealed that the NNPCL and terminal owners went ahead to increase their prices by ₦14 million just because the NLNG has increased price.

“The increase in price that would take effect is not the fault of retailers. It is the fault of NLNG and terminal owners. Even NNPCL is hiding under the guise that they are now privatised to increase prices. As of last week, 1kg was ₦800 at the terminal, now it is ₦1,200, and could reach ₦1,500 by December if care is not taken.” He said.