Cheaper Cooking Gas Coming as NLNG Supplies 493,000 Metric Tons of LNG to the Nigerian Market

• The Nigeria LNG Limited (NLNG) has confirmed the supply of 493 000 metric tons of LPG annually to the Nigerian market
• The NLNG said it caters to about 30% of the Nigerian market and wants to achieve 100% supply, which is about 1.5 million metric tons
• The development came on the back of the price of cooking gas hitting about N1,200 per 1kg in Nigeria

Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.

The Nigeria LNG Limited (NLNG) reports that it supplies about 1.5 million tons of liquid petroleum Gas (LPG) to the domestic Nigerian market.

The company clarified that it provides nearly 500.000 metric tons of LPG annually to meet local demands.

NLNG promises 100% supply of LPG needs

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The development is in pursuit of its commitment to deliver 100% of its LPG production to the domestic market, which was decided by the company’s board of directors.

According to reports, in 2023, NLNG said it supplied about 493,000 metric tons of LPG to the local market, 498,000 metric tons in 2022 and 399,000 in 2021.

The company currently caters to 30% of Nigeria's total LPG demand, which is estimated to be about 1.5 million metric tons.

NLNG said it is firmly committed to supplying cooking gas to the local market.

Cooking gas prices hit a new high

The statement by LNG follows an increase in the cost of cooking gas across the country despite the Nigerian government's move to reduce the cost.

In December last year, the Nigerian government exempted LPG and its equipment from paying customs duty and Value Added Tax (VAT) to reduce the commodity’s price.

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TheCable reports that the ministry of finance disclosed in a letter dated November 28, 2023, to the special adviser to the president on energy, the comptroller-general of the Nigeria Customs Service (NCS), and the Chairman of the Federal Inland Revenue Service (FIRS).

The minister of Finance and coordinating minister of the Economy, Wale Edun, signed the letter.

But despite the government's efforts, the cooking price has remained high, with the product selling for as much as N1,200 per 1kg.

The situation has led households and other Nigerians to resort to alternative fuel sources.

Marketers Identify cabal behind the rising price of LPG

Legit.ng reported that 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.

Source: Legit.ng