Cooking Gas Marketers Reveal Panic Buying Could Raise Price In Nigeria

Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) have cautioned Nigerians against buying Liquefied Petroleum Gas (LPG), known as cooking gas, in panic, amid fear of scarcity.

There have been reports of possible scarcity of cooking gas after flood in over 20 states across Nigeria forced Nigeria Liquefied Natural Gas Limited (NLNG) to declare Force Najeure. 

Nigeria Liquefied Natural Gas Limited declared force majeure, which is an announcement that enables a firm to stop offering its contractual service in the event of natural disaster, after the flood forced upstream traders to lock their production. 

In a bid to douse fear, NALPGAM President, Oladapo Olatunbosun, said NLNG has not shut down its production facility in Bonny, so there’s availability of cooking gas. 

Olatunbosun said speculated shortage of cooking gas could cause price hike if Nigerians panic buy. It was revealed that production of Liquefied Petroleum Gas will continue, and pick up after the flood. 

While he admitted that the flood has affected distribution of cooking gas across the country, he advised middlemen not to profit from the current panic buying by taking advantage of the fear of scarcity. 

“Based on information reaching the Association; NLNG has not shut down its production facility in Bonny as rumoured.” Olatunbosun said. 

It was gathered that a cargo of cooking gas for the domestic market has been shipped by NLNG on Thursday, October 20, 2022. The shipment of LPG arrived in Lagos on Thursday to discharge product from the NLNG Plant in Bonny, “Alfred Temile”. 

Olatunbosun stated “The public should know that the supply of LPG from NLNG has not stopped. 

“We should not give opportunity for further price hike due to speculated shortage of the product. We are already in hard times with the Russian/Ukraine war causing upset in the markets and the scarcity.”