LPG price rises 25% in 3 weeks

The price of Liquefied Petroleum Gas, LPG, otherwise known as cooking gas, has risen by 25.7 per cent in the last three weeks as 12.5kg now sells at N8,800 from N7000.

Findings reveal that one Kg rose by 11 per cent to N1000 from N900, 3kg rose by 10 per cent to N2,200 from N2,000, 6kg rose by 15.8 per cent to N4,400 from N3,800, while 12.5kg rose by  25.7 per cent to N8,800 from N7,000.

Meanwhile, the Liquefied Petroleum Gas Retailers branch of NUPENG had called on the government to come up with a clear policy direction for the development of LPG in the country to forestall the consistent rise in the price of the product. 

According to the Association, the worrisome aspect of the development is that it has continued to rise on a daily basis for weeks now but began to escalate in the last one week, leading to significant increases in both depots and retail outlets.

The Association said: “A similar price rise occurred in 2021 leading to the sale of 12.5kg gas for up to N10,000 in late November and early December 2021 amidst supply shortages. We expect the government to come up with a clear policy direction for the development of LPG in the country to forestall the ugly situation.”

Meanwhile, the federal government attributed this challenge to shortage of supply of gas from the major oil companies who have refused to allow transportation of third-party gas through their joint pipelines to the Nigeria Liquefied Natural Gas, NLNG, trains.

Appealing for support, Timipre Sylva, the Minister of State for Petroleum Resources, urged partners in the NLNG project to allow access through their joint pipelines to increase supply to the plant.

Sylva said: “NLNG is at present only able to produce at about 70 per cent of installed capacity and has been unable to operate at full capacity following the refusal of the joint partners – Shell, Chevron, as well as the Nigerian National Petroleum Company (NNPC) Limited and others, to allow third parties to transport gas through their pipelines to the NLNG Trains.

“These challenges have been causing the company’s inability to meet both domestic and international gas obligations.”

He added that  if the NLNG partners relax their rules and allow third parties to supply gas to the NLNG, the company will be able to provide gas to help ease European Union’s gas crisis.

“The issue we have with the existing NLNG Trains is that of insufficient gas supply. The partners are running out of gas and they are refusing third parties to supply gas to the Trains. The partners are insisting that they can only allow third-party supply gas to the plant only if they agree to supply at subsidised rates.

“These people, of course, want to make money and they cannot supply at subsidised rates and that’s why the NLNG Trains cannot produce at full capacity.”

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