Why Price Of 12.5kg Gas May Hit ₦18k by December In Nigeria

Why Price Of 12.5kg Gas May Hit ₦18k By December In Nigeria

8 months ago
1 min read

As Nigerians grapple with the High cost of petrol in the last four months, they may yet encounter another surge in price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.

Retailers have expressed worry about the possibility of the price of 12.5kg of cooking gas reaching ₦18,000 by December 2023 if the Federal Government does not intervene to regulate the actions of terminal owners.

President of the Nigerian Association of Liquefied Petroleum Gas Marketers Olatunbosun Oladapo, who raised these concerns about the soaring cost of LPG said there is alarming increase in price at terminals.

The retail price of 12.5kg of gas cylinder in most places in Lagos, as of last week was ₦10,000, ₦5,600 for 7kg and ₦800 for one kilogram.

However, the price according to Oladapo has jumped to ₦1,200 for 1kg and could reach ₦1,500 by December if not properly addressed.

According to a report from The Punch, Oladapo said the rates at terminals have surged from an average of ₦9 – ₦10 million per 20 metric tons to a staggering ₦14 million per 20 metric tons.

“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 per metric ton by December. This means that a 12.5kg cylinder could cost as much as N18,000,” Oladapo lamented.

He accused terminal owners of riding on the back of the excuse of foreign exchange crisis which has led to high FX rates to hike the price of gas which according to him, is unjustifiable.

He said: “NNPCL currently takes 59 per cent of the gas produced by NLNG, although NLNG has also increased its price from N6 million to N8 million. Because NLNG has increased prices, NNPCL and terminal owners have raised prices to N14 million.

“The price increase that would take effect is not retailers’ fault. It is the fault of NLNG and terminal owners. Even NNPCL is hiding because they are now privatised to increase prices. As of last week, 1kg was N800 at the terminal, now N1,200, and could reach N1,500 by December if care is not taken.”

While emphasising on the consequences of the increase in price of gas, Oladapo warned that it could force Nigerians who may not afford the cost to resort to firewood as an alternative cooking.

In terms of the global agenda of energy  transition which discourages proliferation and use of fossil fuels, gas is a better alternative in terms of offering cleaner form of energy.

In recent months, Nigerians were delighted to buy cooking gas at a reduced price of ₦550, but it was for a short while as the price has not skyrocketed.

The threat of further surge in price of LPG would pose more challenge for many Nigerians households.

Correspondent at Prime Business Africa | + posts

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.


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