Business
Marketers set to hike price of cooking gas
Oil marketers have concluded arrangements to hike the price of Liquefied Petroleum Gas (LPG) better known as cooking gas by between 70 to 100 per cent as a result of product scarcity, Ripples Nigeria has learnt.
It was gathered that most of the LPG companies have been unable to get the products from the terminal owners in recent times, especially Pipelines and Product Marketing Company (PPMC), Algasco and others.
Expectedly, this has led to artificial scarcity which is affecting supply of the product.
Confirming this development on Thursday, the Executive Secretary, Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien who spoke at a stakeholders’ forum in Lagos, said the cost of obtaining LPG from terminal operators has increased in the past few days, thus necessitating a corresponding increase in the price of the product.
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“Last week Tuesday, marketers bought 20 metric tonnes of LPG from terminal owners for N2.4million; the price rose to N2.6million on Thursday, N3milliion on Friday and N3.5million this Monday. Based on this, marketers have agreed to increase the price, at which they are selling LPG to both the individual and industrial users.
“This is the only way, by which the marketers can recoup their investments and grow. By this, people would now be filling 12.7kilogramme cylinder with between N3, 500 or N4, 000, as against N2, 800.’’
According to him, PPMC owns Maritime Transportation Department (MTD), a unit responsible for berthing of vessels to favour some marketers.
The issue, Essien argued, negates the Federal Government’s goal of increasing the production and consumption of LPG in the country.
Also, the Secretary, NALPGAM, Mr Bayo Ogunrinde, said a vessel with capacity of between 11,000 and 13,000 metric tonnes of LPG comes to Lagos once in a month, adding that major marketers such as NIPCO Plc and NAFGAS get their product from the vessel.
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