LPGAR calls for domestication of gas prices to prevent hike in prices
By Akinyemi Precious
Liquefied Petroleum Gas Retailers (LPGAR) has urged the Nigerian Government to develop and establish more local LPG production plants, NLNG price domestication, storage and transportation so as to prevent further price hikes.
This was made known by the Branch National Chairman of LPGAR, Mr Ayobami Olarinoye in an interview in Lagos over the looming price hike on cooking gas.
He stated that retailers have been bearing the burden despite the price rising over the last weeks.
“The recent price increase, as well as the expected further price increases, is as the result of further depreciation of the Naira in recent time.
“Again, during this period of the year, international prices of LPG usually rise. This is the second major factor leading to the increases in the price.”
They added that Nigeria’s main supplier, the NLNG supplies the market with international prices, citing exchange rate differences too.
“The Nigerian LPG market is often priced according to the international market because of the country’s dependent on importation for a substantial amount of LPG she consumes.
“Again, the country’s major supplier, the Nigeria Liquefied Natural Gas (NLNG), supplies local marketers, using the international LPG price and US dollar rate.
“So, it is obvious that the price rise is a result of recent changes in the exchange rate and the global market price.”
The association noted that NLNG had been doing its best but advised that other major operators in the industry could establish LPG production plants and make it available to the local market, urging the FG could have an arrangement with NLNG and other possible producers to domesticate the pricing of the product, then it would make the product affordable to the consumers.
“Indeed the time is very critical. The price of PMS has risen beyond the purchasing power of the average person.
“Even the price of diesel has started to rise. Again, prices of essential commodities, especially food have skyrocketed.
“It is really a difficult time for the people of this country. As I said earlier, if the government can work closely with NLNG and LPG importers and provide them with some incentives, then the price can be affordable to Nigerians at this critical time.”
They called on NLNG to domesticate its LPG pricing system and increase its local supply.
He also said that gas consumers in the country should prepare for an increase in the price of liquefied petroleum gas (cooking gas).
