…As dealers lament poor sales
The price of Liquefied Petroleum Gas, LPG, also known as cooking gas has increased by 14.3 percent on a month-on-month, MoM, basis, to N1,500 per kilogram, from N1,300 recorded last month.
However, the ex-depot price of the product increased by 16.7 percent on a MoM basis to N21 million per 20 metric tonnes (MT), up from N18 million recorded last month.
Checks by Vanguard indicated that cooking gas now sells up to N1,500 per kilogramme in many locations.
Speaking with Vanguard, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Mr. Inyang Edu, confirmed that the depot price rose to N21 million adding that the purchasing power of Nigerians dropped drastically due to the hike in price.
According to him, the dealers now record poor sales at their various gas plants as consumers resort to other sources of energy.
“The depots sell N1,065,000 per one metric ton which gives a total of over N21 million for 20 metric tonnes. The depots include, Rainoil, Nipco, Mobil, Ardova. Before now, Nipco sold for N19.5 million per 20 metric tonnes but it has now been increased to N21 million”.
Commenting on the cause of the sharp increase, Inyang said it was related to the Middle East crisis as it has affected not only cooking gas but other petroleum products.
On supply from Dangote refinery, Inyang noted, “the refinery sell at a cheaper rate of about N16 million for 20 metric tonnes to their off-takers who then includes their profits, making the products high for marketers to buy.
He added, “The supply from Dangote is limited, he recently announced that he only gets five out of 13 crude oil allocations it required, as he imports crude oil to refine here in Nigeria”.
“This will continue to hamper the price of petroleum products coupled with the Middle East crises that have disrupted oil production”.