The Nigeria Liquefied Natural Gas (NLNG) Limited has attributed the rising cost of LPG, otherwise known as cooking gas, nationwide to the scarcity of vessels, foreign exchange fluctuations and oil prices. The company said these factors have affected the domestic and international markets and led to the increase in the price of the commodity.
According to Amebo City, the price for 12.5kg of LPG increased to N15,000 from N12,000 when it was sold in October. This represents a 25% increase in the cost of the product within a month. The price hike has caused hardship for many Nigerians who rely on cooking gas for their domestic and commercial needs.
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In a statement on Wednesday, NLNG said it was committed to increasing the domestic supply of LPG in collaboration with major stakeholders. The company said it had delivered over 1.2 million metric tonnes of LPG to the local market in the last 10 years and had reduced its price by 50% in 2017 to boost affordability and accessibility.
The statement read: “The domestic LPG market, like any other, is subject to dynamic market forces and various external factors. Such factors as changes in exchange rates, escalating price benchmarks mirroring crude oil prices, and the Panama Canal drought-induced vessel scarcity impacting transport costs, especially for imported LPG, have had significant effects on energy prices in recent times and could undoubtedly be some of the reasons for recent price hikes witnessed in the domestic market.”
The company added that it was working with the Federal Government, the Nigerian National Petroleum Corporation, the Department of Petroleum Resources, and other relevant agencies to address the challenges facing the LPG sector and ensure the availability and affordability of the product for Nigerians.
