OpeOluwani Akintayo
Lagos — Prices of liquefied Petroleum Gas, LPG also known as cooking gas, is again on the rise after declining at the beginning of the year.
The development which began within the last two weeks, has seen price increase by N1000 for the 12.5kg size.
A statement signed by the branch Chairman, Liquefied Petroleum Gas Retailers, LPGAR a branch of NUPENG, Chika Michael Umudu, said the price of the average size cylinder (12.5kg) is now being sold at about N8500:00 from N7500:00 two weeks ago in Lagos and neighboring states.
Similarly, in parts of northern Nigeria, Southeast and South-South the price has risen to N9000:00/N9500:00 from N8000:00/N8500:00.
Prices at the depots have similarly risen to about eleven million naira (N11,000,000:00) for 20 metric tons from ten million naira (N10,000,000:00) and less sold about two weeks ago.
The union recalls that similar price rise occurred in 2021 leading to the sale of 12.5kg gas up to ten thousand naira (N10,000:00) in late November and early December 2021 amidst supply shortages.
The union said it expects the government to come up with clear policy direction for the development of LPG in the country to forestall continuous price rise.
Umudu said the branch union considers as an irony that such price rises are happening at the time when government assured Nigerians of adequate supply of the product at affordable prices via the National Gas Expansion Programme, NGEP.
Government had between December 2020 and early months of 2021 through its various programmes, launched gas expansion programme tagged “Gas Decade” aimed at not only making LPG available to all Nigerian homes, but also to expand the use of gas for other purposes such as automobile and public/private electric generation.
“It supposes that enabling infrastructure would have been in place before the launch but the events immediately after the launch prove the contrary.
“This is not equally good at this time when efforts should be at the top gear to expand the use of LPG in the country as a means of reducing environmental pollution, deforestation and desertification”, Umudu said.
The union, therefore, charged the government to revisit its gas expansion programme and to involve all stakeholders in the process.
The branch union also decried a situation where gas produced in Nigeria is priced in dollars, adding that more local production should be encouraged to at least minimise importation.
He described as “unfortunate”, situation where major marketers including the IOCs patronise retailing and related activities against their expected major role which is production.
This, he said is killing mass employment and local participation in the sector.
“No economy grows where small local enterprises are not encouraged. It is, therefore, expected that major marketers in the sector should concentrate on high capital/technology investments such as LPG production and establishment of tank farms which would boost the country’s economy and create employment”.
This he said is against the trend in the last 15 years when retailing and other ‘briefcase’ business activities have been prioritised by the major companies to the detriment of small businesses and supply stability.
“This is because it has been proven beyond every reasonable doubt that absence of adequate product is the bane of the LPG development in the country”, he said.
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