The price of refilling a 12.5kg cylinder of Liquefied Petroleum Gas (LPG), commonly called cooking gas, has jumped sharply by 34.6 percent, rising to N17,500 this week from N12,750 last week.
Meanwhile, the cost of 1kg of LPG now ranges between N1,350 and N1,500, depending on the location.
In a phone interview, Mr. Olatunbosun Oladapo, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said the hike is largely due to the ongoing strike by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which has disrupted the supply chain, especially in the South-West.
“Gas pricing is all about supply and demand,” Oladapo explained. “When supply is tight, prices go up. During the strike, many gas plants were either closed or operating at reduced capacity. Dangote, our main supplier, hasn’t released loading invoices to our members, some of whom have been waiting for over three weeks. That leaves marketers with no choice but to buy from other suppliers at higher rates.”
Read Also;
FG Reaffirms Commitment to Attracting Investments in Oil, Gas Sector
He added that some competitors have taken advantage of the shortage to hike their prices. “No marketer wants to run out of stock, so they have to buy from these suppliers, even at higher costs,” he said.
Oladapo appealed to Dangote to release more products to marketers to help stabilize supply and prices. “We’re hopeful that with improved supply, prices will start to drop in the coming weeks,” he added.
