In order to boost the awareness of Nigerians about the benefits of utilizing the Liquefied Petroleum Gas (LPG), also known as cooking gas, the Nigerian Liquefied Natural Gas Association has said that it is injecting one million litres of cylinders into the Nigerian market before the end of the year.
Speaking with Shipping Position Daily in his office last week, the president of the association, Alhaji Auwalu Ilu said that the project is coming under a program it has initiated known as the National Cylinder Scheme.
In order to boost the awareness of Nigerians about the benefits of utilizing the Liquefied Petroleum Gas (LPG), also known as cooking gas, the Nigerian Liquefied Natural Gas Association has said that it is injecting one million litres of cylinders into the Nigerian market before the end of the year.
Speaking with Shipping Position Daily in his office last week, the president of the association, Alhaji Auwalu Ilu said that the project is coming under a program it has initiated known as the National Cylinder Scheme.
Auwalu said that the latest development about the scheme is that one of the strong members of the association, Total Nigeria Plc is set to commission its new 18,000 3kg cylinders in Lagos this month and that it will happen any moment from now.
He said that this is in addition to the 500,000 cylinders that were recently commissioned by the Oando Oil Plc in Lagos.
“The Total cylinder scheme is commencing anytime this month, we are injecting about 18,000 cylinders, they will be doing their launching anytime in this month”.
Auwalu who is also the Managing Director of Ultimate Gas Limited added that: “Gas Terminaling limited is also doing their own launching, and most of our members as individual companies have their own programmes, likewise Ultimate gas, we are also expecting about six containers of various sizes of cylinders by the end of next month, so we are expecting that between now and the end of the year, we would have received like one million cylinders” he assured.
He confirmed that the association has just received a letter from the Lagos State Commissioner for Energy on how it can collaborate together so that Lagos State will champion the use of LPG and deemphasize the use of kerosene and charcoal. According to him, the federal government through the NNPC is also looking at their own cylinder scheme.
Auwalu told Shipping Position Daily that another member of the association, NIPCO Plc is now getting marketers to go round markets in Lagos to educate people on the use of LPG, he however regretted that, “unfortunately, publicity is very expensive, national campaign like this cost hundreds of dollars and you know the industry is not big enough, but today the market is improving and we are making progress”.
Giving an insight on the present cost of cooking gas in the market, Auwalu said on the average, cooking gas is like N2, 700 and it is reasonable, “we buy it at international price so if the crude oil goes up so also does the price of all other products, Nigerians are paying the same price as somebody in the US or in the UK, whatever is obtainable in the market is what you pay”
He said that presently there is no subsidy enjoyed on LPG importation and that for now, there are no incentives from the government but that the association is trying to ensure that its members begin to enjoy one.
He said that the more the cylinders the more the level of consumption, according to him, the old cylinders have been in the market for a long time and that people being encouraged to return the old ones and get new oneS.
“It is based on commercial price, you pay duty, VAT, SON approval fees and registration fees, by the time you add all these fees, you are not a charity organization, so you will have to pass it to the consumers” Auwalu said.
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