The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has raised alarm over the rising cost of cooking gas in the country. The association said the price of a 12.5kg cylinder of cooking gas could hit N18,000 by December if the government does not intervene.
Why is cooking gas price increasing?
According to NALPGAM, the main reason for the price hike is the arbitrary increase by terminal owners, who import and distribute cooking gas to marketers. The association said terminal owners have increased the price of 20 metric tons of cooking gas from N9-N10 million to N14 million in a matter of weeks.
NALPGAM said terminal owners were exploiting the high foreign exchange rate and the global increase in crude oil price to inflate the price of cooking gas. The association said this was unfair, as Nigeria still produces enough cooking gas from the Nigerian Liquefied Natural Gas Limited (NLNG).
The association said NLNG has also increased its price from N6 million to N8 million per 20 metric tons, but that was still reasonable compared to the terminal owners’ price. The association said the Nigerian National Petroleum Corporation (NNPC), which takes 59 per cent of NLNG’s gas, was also hiding behind privatisation to increase its price.
What are the implications of cooking gas price hike?
NALPGAM said the high cost of cooking gas would affect millions of Nigerians who rely on it for domestic and commercial use. The association said many people would not be able to afford cooking gas and would resort to firewood and charcoal, which are harmful to health and the environment.
The association said the price hike would also affect the government’s efforts to promote the use of cooking gas as a cleaner and safer alternative to kerosene and petrol. The association said Nigeria has one of the lowest per capita consumption of cooking gas in Africa, despite being a major producer and exporter of natural gas.
The association said the price hike would also discourage new investors and entrepreneurs who want to venture into the cooking gas business. The association said this would hamper the growth and development of the sector, which has huge potential for job creation and revenue generation.
What are the solutions to cooking gas price hike?
NALPGAM appealed to the government to intervene and regulate the activities of terminal owners, who it accused of being greedy and insensitive to the plight of Nigerians. The association said the government should ensure that terminal owners charge reasonable and affordable prices for cooking gas.
The association also urged the government to create ethical standards, ensure transparency and accountability, and foster public awareness and education on cooking gas. The association also called on the government and the industry to work together to ensure the safety and benefits of cooking gas.
The association expressed optimism that with proper regulation and collaboration, Nigeria can achieve its target of increasing its domestic consumption of cooking gas from 1.2 million metric tons per annum to five million metric tons per annum by 2025.
Source: PUNCH
