Why cooking gas is costly: – Retailers

The Liquefied Petroleum Gas Retailers Association of Nigeria has given an insight into the reasons for the soaring prices of cooking gas in the country.
In a statement in Lagos last week, the association explained  that the rising prices were due mainly to inadequate infrastructure and low level of investments in the sector.

The Liquefied Petroleum Gas Retailers Association of Nigeria has given an insight into the reasons for the soaring prices of cooking gas in the country.
In a statement in Lagos last week, the association explained  that the rising prices were due mainly to inadequate infrastructure and low level of investments in the sector.
 “The storage depots are very few and most of them are concentrated in Lagos State, making the price to be much higher in other states. Other factors are bad road networks, which make cost of distribution very high; congestion at the Apapa Port, which causes delay for the berthing of LPG vessels; and lack of a robust government policy for the sector”, it stated.
“In fact, the scheme can be designed in a way that a prospective LPG user can acquire LPG cylinder and other necessary material at less than 40 per cent of market price and unconsciously pay the real cost as he or she refills the cylinder. This is done in other countries, including Ghana,” the association added.
The association however advised that government should formulate a policy that would ensure that majority of Nigerians to adopt LPG as their cooking/heating energy source.
“There is a need for tax waivers for investors. Government should reduce or even remove duties charged on imported LPG cylinders, equipment and accessories in order to boost the use of the product in the country. There is a need for locally refined LPG to boost supply and to reduce price. Also there is a need for the construction of internal depots,” it added.
“Cylinders should also be produced locally as it was done in the past. Fake and substandard cylinders, equipment and accessories should be eradicated from the market. Public enlightenment programmes should be created to popularise the product because many Nigerians know little or nothing about LPG. Nigerians should be told that LPG is not as dangerous as many think. Also, the enlightenment should include providing information to help users handle LPG in their houses.”