Cooking Gas Suppliers Give Condition for Crashing Price as 1kg Hits New High
- The National Oil and Gas Suppliers Association of Nigeria (NOGASA) has asked the federal government to address the issue of high exchange rate
- The NOGASA chairman, Kenneth Korie, said the rise in the exchange rate was responsible for the high cost of cooking gas in Nigeria
- Nigerians report that the price of cooking gas has risen to N1,500 per kilogramme in the last month
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Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.
The National Oil and Gas Suppliers Association of Nigeria (NOGASA) has asked the Nigerian government to tame the increasing exchange rate crisis and adopt the N750 per dollar exchange rate contained in the 2024 budget benchmark.
The suppliers also asked the government to ensure that payments for petroleum products are made in naira as part of measures to address the rising prices of petroleum products.
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Gas suppliers give reasons for rising prices
The association’s national president, Benneth Korie, recently disclosed this during a press briefing in Abuja.
Korie stated that most Nigerians have adopted the dollar as their legal tender in Nigeria, adding that the increase in the exchange rate was the main challenge facing modular refineries from coming onstream.
The NOGASA boss blamed the rising cost of diesel and the high dollar rate for the increase in petrol prices.
Korie warned that if the Nigerian government fails to address the challenges, the current business terrain will liquidate petroleum product marketers before the end of February 2024.
He said:
“Fix that diesel problem, and then PMS will be stable. If NNPC will keep the PMS price from June to date, is there anything wrong with doing it for AGO?
“So, let the government, if the government wants to be fair, wants to do the deregulation properly, the diesel too should go the same way PMS is going.
“Heavens will not fall if you sell AGO N650/litre. The same magic they have in PMS, the government should apply it on AGO, and then you should see things ease.”
He stated that the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Ports Authority (NPA) were asking for dollar payments for services rendered to Nigerians in Nigeria.
Gas dealers give strike notice
NOGASA's boss reiterated the need for standard road infrastructure across Nigeria, saying that it will reduce the need for spare parts, one of the leading causes of the desire for dollars for petroleum products.
He stated that the move by the Nigerian Association of Road Transport Owners (NARTO) to withdraw their services was due to the high cost of diesel.
He also asked the government to reintroduce the petroleum equalisation fund to reduce the country's hardship rate.
Leadership reported that Korie hinted at plans to withdraw their services if their concerns were not met before the end of February, stating that the high-interest rate charged by banks was a significant challenge facing marketers’ operations.
In a recent development, the Nigerian government has banned cooking gas exports over the high cost of the product in the local market.
Cooking gas hits N1,500 per kilo
The development follows an increase in cooking gas prices across the country.
As of the time of writing, Nigerians report that one kilogramme of cooking gas sells for as high as N1,500 compared to the N850 per kilogramme sold in November and December.
Due to the rising cost of the commodity, many Nigerians have opted for other fuel alternatives.
Retailers said that dealers have also hiked their depot prices, leading to an increase in retail prices.
One of the retailers in the Iju Ishaga area of Lagos, identified as Onyeze Chinedu, told Legit.ng Many Nigerians are opting for charcoal and wood as fuel sources.
“There is a reduced patronage, and we have noticed many have reverted to using charcoal instead of gas. Our main supplier told us that the price increase is due to the high exchange rate,” he said.
The cost of cooking gas rises again
Legit.ng reported that the price of a 12.5 kilogram of Liquified Natural Gas (LPG) hiked from N12,000 to N14,000 over the weekend.
However, there are indications that the cost may increase to reach N16,000 due to ongoing concerns about the exchange rate. Industry stakeholders have attributed the potential hike to the exchange rate, which hovers around $1 for N1,500 in the unofficial market.
Industry stakeholders have attributed the potential hike to the exchange rate, which hovers around $1 for N1,500 in the unofficial market.
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Source: Legit.ng
