From N7, 500/12.5kg cylinder, cooking gas price likely to hit N10, 000 soon – marketers warn

Speaking at the Weekly e-Discourse organized by Platforms Africa, the Executive Secretary of NALPGAM, Bassey Essien said the skyrocketing price of gas “is our fear and what we are trying to avoid. Early in the year a 20 metric ton of gas was selling for below N5 million, but today same tonnage sells for N10.2 million.

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If government continues to ignore calls to review the import charges and VAT recently introduced, Nigerians may soon pay N10, 000 for a 12.5-kg cylinder of gas. Today the price has risen to between N7, 500 and N8, 000

If government continues to ignore calls to review the import charges and VAT recently introduced, Nigerians may soon pay N10, 000 for a 12.5-kg cylinder of gas. Today the price has risen to between N7, 500 and N8, 000.

NALPGAM, the National Association of LPG Marketers, explained that the federal government had refused to address issues that led to the rise of cooking gas prices.

Speaking at the Weekly e-Discourse organized by Platforms Africa, the Executive Secretary of NALPGAM, Bassey Essien said the skyrocketing price of gas “is our fear and what we are trying to avoid. Early in the year a 20 metric ton of gas was selling for below N5 million, but today same tonnage sells for N10.2 million.

“As long as there is that supply shortage, the available quantity and the dynamics of supply-demand will keep pushing the price higher.

Essien said that more Nigerians “are being forced to return to coal, sawdust, kerosene, and other dirty fuel, due to the high prices.

“The Association is very concerned with the high cost as many Nigerians are resorting to firewood, charcoal and kerosene to cook and the prices of these cooking energy sources have suddenly gone up.

Essien said: “Unfortunately, there is no hope in sight for a reduction for now except the supply is increased. NLNG says it has supplied all its production quota into the market.

“Other available sources in-country are still negligible to address the shortfall in supply,” Essien stated.

He explained that the cost of cylinders “has been on the gradual rise over the years. We have about 2 cylinder manufacturing plants in the country and all the elements of production are imported, note the import implications.

“The cylinder ownership structure in the country ensures that owners are in charge of their cylinders. Cylinders expire on the 15th year of usage from the manufacturing date.

“Despite the over 180million population of the country, we hardly have up to 10million cylinders in circulation.

“The progress in cylinder acquisition still needs government input to ensure that the cost of materials for cylinder production get the necessary exemption from duties but however the state of our local currency still remains a major problem,” Essien said.

Logistics, infrastructure impairments to LPG-offtake by….

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