Despite Massive Importation, Cooking Gas Price Soars As Consumers Groan

Group Managing Director of NNPC, Dr. Maikanti Baru receives a certificate from the President, Nigerian Society of Engineers, Engr. Adekunle Mokuolu shortly after delivering the 12th Edition of the Nigerian Mechanical Engineers Distinguished Lecture in Abuja last week. 

Despite recent reports of massive importation of cooking gas known as Liquefied Petroleum Gas (LPG), the price of the commodity has now increased at various gas stations across Lagos, this is even as consumers have continued to groan over the increase.

Shipping Position Daily investigations last week revealed that the average price for the refilling of   the popular 12.5kg cylinder which used to be N3, 600 is now refilled at N4,200 while the average price for the refilling of a 5kg cylinder which used to be at N1,600 is now N2,200.

Our correspondent reported that the increase in the price of cooking gas is coming barely one month after MT Sahara Gas, the newly-built vessel acquired by the West Africa Gas Limited (WAGL) delivered 7,000 metric tons of LPG in its historic maiden voyage to Nigeria to boost availability and safe access to the commodity.

However speaking with Shipping Position Daily last week, one of the LPG dealers in a Lagos suburb said that there was no explanation given for the increase in the price of the commodity. But, a consumer, Mrs Dupe Abraham said that the increase was as a result of the government being the sole importer of cooking gas.

“In Nigeria, when there is a wide acceptance of a particular product, that is when you see the producers inflating the price, this 12kg cylinder was formerly priced at N2,500, but as of today, many people are now using cooking gas, most homes you go to now are on cooking gas, it is wrong that we should now be paying higher for cooking gas”

Mrs Abraham said there was need for government to encourage private companies to do importation of cooking gas, so as to allow competition and discourage price hikes.

Another respondent and dealer, who described himself as Baba Marvelous, although lamented the increase in the price of the LPG; he, however said that despite the price, the product is available everywhere unlike Kerosene.

According to findings by our correspondent, before the July price increase, the average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) decreased by -1.80% month-on-month and -8.17% year-on-year to N2,034.93 in June 2018 from N2,072.24 in May. 

States with the highest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Bauchi (N2,500.06), Borno (N2,465.33) and Gombe (N2,360.95). States with the lowest average price for the refilling of a 5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Abuja (N1,795.00), Kaduna (N1,716.67) and Ebonyi (N1,699.66). 

Similarly, the average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) decreased by -0.46% month-on-month and -4.38% year-on-year to N4,278.95 in June 2018 from N4,298.72 in May 2018. 

States with the highest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Benue (N4,900.21), Kaduna (N4,750.00) and Cross River (N4,650.00). States with the lowest average price for the refilling of a 12.5kg cylinder for Liquefied Petroleum Gas (Cooking Gas) were Oyo (N3,831.94), Ogun (N3,809.09) and Lagos(N3,613.04).

Recall that the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru at the maiden voyage of MT Sahara Gas assured that, in keeping with the Federal Government’s economic growth plan, NNPC remained committed to stabilizing the market and ensuring sustainability of the commodity through strategic deliveries within the sub-region. 

MT Sahara Gas, a newly acquired LPG Vessel owned by WAGL (an NNPC/Sahara Group JV) to Nigeria WAGL is a Joint Venture of Nigerian National Petroleum Corporation (NNPC) and leading Energy Conglomerate, Sahara Group. The JV is run by two companies, NNPC LNG Ltd, a wholly-owned subsidiary of NNPC and Sahara Energy’s Oil and Gas trading arm, Ocean Bed Trading Ltd (BVI).

Baru said “This is a historic achievement for the NNPC and Sahara Group that showcases a truly successful partnership by all global standards.

The quest is to achieve uninterrupted supply of the commodity and address infrastructural limitations as we continue to implement our zero-tolerance policy against adulterated products and their promoters across the nation.” 

Baru said the NNPC/Sahara Group partnership remained a model for successful JVs, adding that both parties were considering various strategies to optimise the delivery of the product across West Africa. “The Federal Government deserves commendation for implementing policies that are geared towards growing the economy. That we have such a partnership involving the NNPC and Sahara Group is indeed an important global narrative for Nigeria in terms of capacity, expertise and sustainability,” he added.  

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