Monday, October 14, 2024 - There has been a hike in the prices of Liquefied Petroleum Gas, also known as cooking gas in the country.
According to reports cooking gas is selling for N1,500/kg
in some retail outlets in the country.
According to the Managing Director/Chief Executive Officer of NIPCO Plc, Suresh
Kumar, over 60 per cent of cooking gas consumed in Nigeria is being imported
therefore the emergence of Dangote refinery and other domestic refineries would
bring down the price of cooking gas .
However, on Sunday, October 14, the prices of cooking gas peaked at N1,500/kg
in retail outlets in Ogun and Lagos States while in Abuja, the average price
for refilling a 12.5kg cylinder of cooking gas has increased by 41.6 per cent
to N17,000 in different areas.
This sharp price rise has implications for consumers, many of whom rely on LPG
for their daily cooking needs.
Speaking at the just-concluded National Conference of the Nigerian Association
of Liquefied Petroleum Gas Marketers 2024, held in Lagos, Kumar, revealed that
local production of LPG remains inadequate, urging the Federal Government to
encourage Chevron to convert more of its propane output into butane.
“Currently, less than 40 per cent of the 1.5 million metric tonnes consumed
domestically is produced locally. This is why the government must encourage
companies like Chevron to convert more of their propane output into butane,
which is more suitable for domestic use,” he explained.
“With the Dangote refinery and other refineries now sourcing crude oil in local
currency, the volume of LPG produced locally is expected to increase, which
will, in turn, drive down the price of the commodity,” the MD explained.
He added, “There is hope that the reliance on imported LPG will decrease, which
will positively influence the prices at which the product is sold domestically.
Greater local production will make LPG more affordable since it reduces
exposure to foreign exchange fluctuations and international pricing dynamics.”
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