The prices of cooking gas in Nigeria has shot up by about 140%. This has compel marketers to act fast in importing substantial quantities of liquefied petroleum gas (LPG) in an attempt to increase supply and reduce prices.
Price surveys indicate that the cost of LPG has risen from approximately N1,000 per kilogramme in previous months to N2,400 recently, putting more strain on families who are struggling with growing costs of living.
According to sources within the industry, the price rise is largely due to insufficient local production. Sources confirmed that while the price rise was attributed to the recent fall in production at the Dangote Petroleum Refinery, it is not because of exportation but increased utilisation due to an expansion of daily capacity to 700,000 barrels.
In order to solve the problem, regulatory authorities are now awarding permits to import LPG, while marketers and depot owners are making arrangements to import substantial amounts of the commodity.
Spokespersons of NMDPRA revealed that steps are being undertaken together with NNPC and others in an effort to guarantee better availability in the local markets.
Louis Ibah, spokesman for the Minister of State for Petroleum Resources (Gas), revealed that there was a commitment made by marketers to increase imports of LPG in order to guarantee stability of supply in the coming weeks. Moreover, the federal government is encouraging the Dangote refinery to distribute more LPG into the local market.
He added that there are limitations on exporting LPG, thereby ensuring that all the volume of the locally produced LPG is distributed in the local market.
But despite the promises of better supply by the authorities, most retailers claim that the situation has not improved since they face difficulties sourcing for their supplies. Consumers have been forced to seek alternative sources like charcoal and wood.
Price hikes have emerged at a time when statistics indicate that local production makes up a considerable amount of the country’s LPG. The marketers note that if nothing urgent is done about the matter, the increase in prices and shortages will make life difficult for many Nigerians who depend on cooking gas.
