Gas retailers issue a stern warning that the price of a 12.5kg cooking gas cylinder could surge to N18,000 by December unless the Federal Government intervenes to curb terminal owner activities. Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers, expressed concern about the astronomical rise in Liquefied Petroleum Gas prices at terminals, soaring from N9-N10 million per 20 metric tons to N14 million per 20 metric tons.
Oladapo emphasized that there’s a disturbing trend of gas price hikes, and without government intervention, prices may reach an alarming N18 million per metric ton by December, potentially pushing the cost of a 12.5kg cylinder to N18,000.
He attributed these price increases to terminal owners exploiting high foreign exchange rates and increasing the burden on the masses.
Oladapo clarified that there’s no justification for the price hikes, as the Nigerian Liquefied Natural Gas Limited continues to supply the market. He pointed out that NNPCL, which currently secures 59 percent of gas from NLNG, raised its prices to N14 million due to NLNG’s price hike from N6 million to N8 million.
Furthermore, Oladapo expressed concern over the consequences of these rising prices, making gas unaffordable for minimum wage earners. Many are resorting to firewood and charcoal as alternatives.
Regarding promises made to President Tinubu’s administration, Oladapo criticized terminal owners for failing to fulfill their commitments. Gas prices had been rumored to increase in August, and since then, the cost of a 12.5kg cooking gas cylinder has climbed, reaching as high as N10,000.
While gas terminal owners lack a formal association, spokespersons for NavGas and Nipco Plc attributed the price hike to forex challenges and fluctuations in the international market. They acknowledged that prices had increased but didn’t provide specific figures for the landing cost.