As Nigeria marked its 63rd Independence anniversary, the cost of a 12.5kg cylinder of Liquefied Natural Gas (LNG), commonly used for cooking, surged to N12,500, according to findings by The PUNCH.
Our correspondent conducted a market survey which revealed a substantial price increase, as gas retailers pushed up the rates from N10,000, which was reported towards the end of the previous month, to the current approximate price of N12,500 in Lagos.
Earlier this year, The PUNCH reported on warnings from the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo. He cautioned that the price of a 12.5kg cooking gas cylinder could potentially soar to as high as N18,000 by December if the Federal Government did not intervene to regulate the activities of terminal owners.
However, despite these concerns and warnings, Olatunbosun revealed that the government has not yet taken any significant steps to address the ongoing crisis.
“Yes, the price is now N1,000 per kilogram, but the government is yet to step in despite a meeting we had with the NMDPRA,” he stated.
Olatunbosun further explained that gas retailers still acquire 20 metric tons of gas for N14 million at the depot. He emphasized the rising cost of diesel as a contributing factor to the increase in gas prices. It now costs approximately N1.7 million to transport gas from Lagos to the North due to the high cost of diesel.
He expressed the hope that gas prices would decrease, allowing ordinary citizens to benefit from the Federal Government’s decade-long gas policy aimed at making gas more accessible and affordable to the general population.
In September, Ratecaptain reported that terminal owners had increased the price of cooking gas from N9 million to N10 million per 20 metric tons to a staggering N14 million.
“There is a ridiculous hike in gas prices going on right now, and I am afraid that if the Federal Government does not step in to checkmate the activities of these terminal owners, prices could reach as high as N18 million for a 20 metric tons truck by December. This means that a 12.5kg cylinder could cost as much as N18,000,” warned Olatunbosun.
The terminal owners have been attributing the price hikes to high foreign exchange rates, contributing to the ongoing challenges faced by the general populace. However, spokespersons for gas terminal companies NavGas and Nipco Plc did not respond to The PUNCH’s inquiries regarding the situation.