Lagos — The Nigerian National Petroleum Corporation Limited, NNPC, and the Natural Liquefied Natural Gas Limited, NLNG have increased supplies of cooking gas into the market, SweetcrudeReports has gathered.
The National Chairman, Liquefied Petroleum Gas Retailers Association of Nigeria, Michael Umudu, confirmed the increase in supply by the NNPC and NLNG.
As a result, the market has witnessed drop in prices of the product.
The development came following clamour from public regarding incessant increase in prices over the last one year.
Prices of cooking gas shot up from N3500 per 12.5kg in December 2020, to over N10, 000 per 12.5kg late last year.
However, market survey on Sunday showed that prices dropped to between N8400 and N8200. In some outlets, the price of the commodity dropped to between N7,800 and N8,000.
“Also, many LPG users stopped using the commodity at the time when the price kept increasing and this reduced demand pressure on cooking gas, hence causing a rise in its availability and then a gradual drop in price,” Umudu stated.
Asked whether the Federal Government had removed the VAT on cooking gas imports, Umudu replied, “It (government) has not been enforcing the tax and has remained silent about it, but has not said anything about removing it. This also has helped in price reduction.”
Last month, the Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, said the NNPC was increasing the supply of the LPG in a bid to force down its price.
Kyari said, “Two things are in play. One is the supply in the international market of gas. It moves with the price of every other petroleum product including crude oil and its derivatives.
“So definitely, it is a reflection of what is happening in the international market. However, what we are doing is to increase supply and once supply increases, price will come down.”
The Federal Government on Thursday said it was putting measures in place to ensure further reduction in the cost of Liquefied Petroleum Gas, popularly called cooking gas.
Cooking gas price rose by more than 240 percent between January and October 2021.
As a result, some LPG users were forced to shift to charcoal or firewood.
The product had increased by 240 percent for 12.5kg, moving up from N3,000 to N10,200 within the first 10 months of 2021.
“It is in government’s interest for the price to go down consistently and there are certain initiatives that are being taken at the moment, which hopefully will see to further drops in price regardless of the international cost,” the Programme Manager, National LPG Expansion Implementation Plan, Office of the Vice President, Dayo Adeshina, stated.
About 65 percent of the LPG is imported into Nigeria, while domestic production accounts for 35 percent.
International pricing of the LPG as of January last year, was $250 per tonne.
It rose to $875 per tonne by the end of October and started dropping by the end of November into December, and came down to around $500 per tonne at some point but went up again in December to $708 per tonne.
By the 3 January this year, price has risen to $744 per tonne, according to findings.
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