Price Of Cooking Gas Worrisome — Marketers

The Nigerian Association of Liquefied Petroleum Gas Marketers
(NALPGAM), says increment in the price of Liquefied Petroleum Gas
(LPG), also known as cooking gas is worrisome.

NALPGAM’s President, Mr Nosa Ogieva-Okunbor, made this known
while speaking at the association’s 34th Annual General Meeting
(AGM) and Symposium in Lagos.

The News Agency of Nigeria (NAN) reports that the price of
12.5kg of cooking gas has risen from N3,200 a few months back to
about N6,000 in some parts of the country.

Ogieva-Okunbor noted that LPG consumption in Nigeria had
increased from 550,000 Metric Tonnes in 2017 to about 1.2 million
Metric Tonnes in 2020 going by NALPGAM’S members’ investments in
LPG plants.

“However, in spite of efforts at increasing the availability of
cooking gas in the country, the price of the product has become
worrisome in the industry.

“If the trend is not addressed and a lasting solution proffered,
all the gains made to increase consumption to the current modest
level would be reversed.

“The high cost of the product with the eroding purchasing power
of the people would only result in a reversal to the use of the
readily affordable charcoal and firewood with the attendant
negative environmental and health implications.’’

Ogieva-Okunbor said NALPGAM was engaging the relevant government
agencies and stakeholders toward robust policy formulation on full
domestication of LPG.

He noted that this would go a long way in ensuring price
stability and availability of the product to protect the interest
of consumers and investors in the LPG industry.

Ogieva-Okunbor said the association was also working toward
improving safety in selling and distribution of LPG across the
country in order to restore confidence among the consumers.

Also speaking, Mr Sergius Ogun, Chairman, House of
Representatives’ Ad-hoc Committee on Relocation of Tank Farms from
Residential Areas, said the Petroleum Industry Act (PIA) would help
increase domestic supply of LPG.

Ogun said the Act recently signed by President Muhammadu Buhari
had made it obligatory for operators in the gas sector to supply to
the domestic gas market before exporting the product.

He said it was not acceptable for Nigerians to be cooking with
firewood and charcoal when the nation was blessed with abundant
gas.

The lawmaker said the association must collaborate with the
government on the implementation of the PIA and also intensify
efforts to get approval for local manufacturing of gas
cylinders.

On his part, Mr Dayo Adeshina, Programme Manager, National
Liquefied Petroleum Gas Expansion Implementation Plan, said the
government was committed to deepening gas utilisation in the
country.

Adeshina said the government was planning to inject 20 million
cylinders into the domestic market within the next few years,
adding that it would begin with 12 pilot states where 10 million
cylinders would be distributed.

He said the lifespan of a cooking gas cylinder was 15 years,
hence there was the need to remove ownership of the cylinders from
individuals to marketers which was the practice in some other
countries.

Adeshina said the theme of the symposium, “LPG Deepening and
Expansion: Safety Concerns’’, was apt.

He said the government was ready to work with NALPGAM and other
stakeholders to improve safety in the LPG industry in order to
deepen its utilisation in Nigeria.

The Nigerian Association of Liquefied Petroleum Gas Marketers
(NALPGAM), says increment in the price of Liquefied Petroleum Gas
(LPG), also known as cooking gas is worrisome.

NALPGAM’s President, Mr Nosa Ogieva-Okunbor, made this known
while speaking at the association’s 34th Annual General Meeting
(AGM) and Symposium in Lagos.

The News Agency of Nigeria (NAN) reports that the price of
12.5kg of cooking gas has risen from N3,200 a few months back to
about N6,000 in some parts of the country.

Ogieva-Okunbor noted that LPG consumption in Nigeria had
increased from 550,000 Metric Tonnes in 2017 to about 1.2 million
Metric Tonnes in 2020 going by NALPGAM’S members’ investments in
LPG plants.

“However, in spite of efforts at increasing the availability of
cooking gas in the country, the price of the product has become
worrisome in the industry.

“If the trend is not addressed and a lasting solution proffered,
all the gains made to increase consumption to the current modest
level would be reversed.

“The high cost of the product with the eroding purchasing power
of the people would only result in a reversal to the use of the
readily affordable charcoal and firewood with the attendant
negative environmental and health implications.’’

Ogieva-Okunbor said NALPGAM was engaging the relevant government
agencies and stakeholders toward robust policy formulation on full
domestication of LPG.

He noted that this would go a long way in ensuring price
stability and availability of the product to protect the interest
of consumers and investors in the LPG industry.

Ogieva-Okunbor said the association was also working toward
improving safety in selling and distribution of LPG across the
country in order to restore confidence among the consumers.

Also speaking, Mr Sergius Ogun, Chairman, House of
Representatives’ Ad-hoc Committee on Relocation of Tank Farms from
Residential Areas, said the Petroleum Industry Act (PIA) would help
increase domestic supply of LPG.

Ogun said the Act recently signed by President Muhammadu Buhari
had made it obligatory for operators in the gas sector to supply to
the domestic gas market before exporting the product.

He said it was not acceptable for Nigerians to be cooking with
firewood and charcoal when the nation was blessed with abundant
gas.

The lawmaker said the association must collaborate with the
government on the implementation of the PIA and also intensify
efforts to get approval for local manufacturing of gas
cylinders.

On his part, Mr Dayo Adeshina, Programme Manager, National
Liquefied Petroleum Gas Expansion Implementation Plan, said the
government was committed to deepening gas utilisation in the
country.

Adeshina said the government was planning to inject 20 million
cylinders into the domestic market within the next few years,
adding that it would begin with 12 pilot states where 10 million
cylinders would be distributed.

He said the lifespan of a cooking gas cylinder was 15 years,
hence there was the need to remove ownership of the cylinders from
individuals to marketers which was the practice in some other
countries.

Adeshina said the theme of the symposium, “LPG Deepening and
Expansion: Safety Concerns’’, was apt.

He said the government was ready to work with NALPGAM and other
stakeholders to improve safety in the LPG industry in order to
deepen its utilisation in Nigeria.