NLNG reveals factors responsible for hike in price of cooking gas

The NLNG in a statement signed by its General Manager, External Relations, Andy Odeh, said the report is speculative and shows a misunderstanding of Nigeria's complex market dynamics.

NLNG denied increasing the price of the product as reported and also debunked the news of an impending scarcity and increment in the price of cooking gas otherwise known as Liquefied Petroleum Gas LPG in the domestic market.

‘‘NLNG dismisses these media reports as speculative and indicative of a fundamental misunderstanding of Nigeria’s intricate market dynamics.

NLNG has been making defining contributions to the domestic LPG market, spurring the steady growth of the nation’s DLPG market volume from less than 50,000 metric tonnes of imported LPG in 2007 to over 1.3 million metric tons of both domestic and imported LPG today.” the statement said.

Speaking further, the NLNG linked the hike in the price of cooking gas to certain dynamic market forces and various external factors which include changes in exchange rates and the skyrocketing price benchmarks linked to crude oil prices. 

The NLNG also pointed out the Panama Canal drought-induced vessel scarcity, a development which has had a significant effect on energy prices in recent times and also had cost implications on imported LPG.

Recall a gas marketers had recently fingered gas terminal owners for being responsible for the price hikes of cooking gas.

Currently, one KG of cooking gas sells for between ₦960 - ₦1200 across the country up from ₦750 - ₦850 sold in August 2023.

The group lamented the sharp increase in the price of LPG at terminals from between ₦9 - ₦10m per 20 metric tonnes to ₦14m per 20 metric tonnes.

The NLNG added that since the beginning of this year, it has delivered over 380,000 metric tonnes of LPG using the Company’s dedicated LPG vessel.

‘‘NLNG has remained committed to delivering domestic LPG to locations as close to the market as possible by diversifying delivery points starting with Lagos in 2023, fostering competition among terminal owners and ultimately reducing consumer supply chain costs.” the company said.

NLNG also promised it would collaborate with relevant industry stakeholders to ensure the reliable supply of its LPG production to the domestic market at prices that are reflective of the market.