"We Know Them:" Marketers Identify Cabal Behind Rising Price of Cooking Gas in Nigeria

• Liquified gas marketers have blamed terminal operators for the high cost of the product in Nigeria
• The Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM) blamed the operators for the increase
• They say the operators buy the commodity at a cheap rate from the federal government and sell to the marketers at a high cost

Cooking gas marketers under the Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM) have accused the Liquified Petroleum Gas (LPG) terminal operators of causing the country's high cooking gas cost.

Oladapo Olatubosun, the association's president, disclosed this when they met the Senate Committee on Gas in the company of the group members on Monday, October 23, 2023.

Operators hike product prices and sell to marketers

The commodity's price recently increased to N1,200 per kilogram, with many Nigerians lamenting its high cost amid surging inflation and high living standards.

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According to Olatubosun, the product price would have remained low since the terminal operators get the price at cheaper costs from the Nigeria LPG plant.

He stated that the terminal owners get the product at N9 million for 20 metric tons and sell it to the marketers at N16.8 million per 20 metric tons.

He said:

"You buy gas for N9m from NLNG and pay in naira, then you sell the same gas for N16m and blackmail the government. When people get to our plants, and we tell them the price, they start weeping and cursing the government, whereas the government has done its best to make life bearable to the people."

Premium Times reported that the Chairman of the Senate Committee on Gas, Jarigbe Jarigbe, guaranteed that the Senate would wade into the issue and solve the challenges.

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He said that the Senate will address the effects of climate change and greenhouse emissions.

Marketers predict an increase by December 2023

Legit.ng earlier reported that marketers predicted that the price of refilling a 12.5kg cylinder with Liquefied Petroleum Gas (cooking gas) will hit N18,000 by December 2023.

This was disclosed by the NALPGM president.

Oladapo noted that there has been a sudden increment from between N9-N10 million per 20 metric tons to N14 million per 20 metric tons.

He warned that if the federal government does not intervene, the gas price could reach N18 million per metric ton by December. This means a 12.5kg cooking gas cylinder could go for as high as N18,000.

States with the highest and cheapest prices

In July, the National Bureau of Statistics said the price for refiling a 5kg cooking gas cylinder fell by 6.7% monthly to N4,068 in June 2023 from N4,361 in May 2023.

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On a year-on-year basis, the price of cooking gas plummeted by 3.56% from N4.218 in June last year.

Kwara State has the highest average price for refiling a 5kg cylinder at N4,750, followed by Niger with N4,691 and Zamfara with N4,683.

Ondo, however, recorded the lowest price at N3,288, followed by Ekiti and Nasarawa states with N3,288 and N3,365, respectively.

The statistical body said the North-Central zone had the highest average retail price for refiling a 5kg cooking gas at N4,422, followed by the North West with N4,260, while the South West recorded the lowest at N3,709.

Also, the average retail price for refiling 12.5kg of cooking gas dropped by 4.35% monthly to N9,123 in June 2023 from N9,5378 in May 2023.

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Legit.ng reported that Nigerians have expressed dissatisfaction with the hike in the price of cooking gas, which has reportedly hit over N1,000 per kilogram (Kg).

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Those who bought cooking gas recently told Legit.ng they were unhappy with the increase in cooking gas prices and how hardship in Nigeria persists.

This is coming after Marketers of Liquefied Petroleum Gas warned that Nigerians may have to pay more for cooking gas in the months ahead.

Source: Legit.ng