The Liquefied Petroleum Gas Retailers (LPGAR) have proposed that the federal government establish additional local LPG production plants to promote storage and transportation, preventing price increases.
Ayobami Olarinoye, the national chairman of LPGAR, expressed his views during an interview in Lagos on Friday regarding the rising prices of cooking gas.
According to Mr Olarinoye, the price has increased in the last four weeks, but retailers have primarily borne the burden.
He stated that the recent and further increase in gas prices was due to the naira depreciation.
“The Nigerian LPG market is often priced according to the international market because of the country’s dependent on importation for a substantial amount of LPG she consumes.
“Again, the country’s major supplier, the Nigeria Liquefied Natural Gas (NLNG), supplies local marketers using the international LPG price and U.S. dollar rate.
“So, it is obvious that the price rise is a result of recent changes in the exchange rate and the global market price,” he stated.
He said NLNG had been doing its best but advised that other operators in the industry could establish LPG production plants and make it available to the local market.
He suggested that if the government could arrange with NLNG and other possible producers to domesticate the product’s pricing, it would make it affordable.
“It is really a difficult time for the people of this country. Like I said earlier, if the government can work closely with NLNG and LPG importers and provide them with some incentives, then the price can be affordable to Nigerians at this critical time,” Mr Olarinoye explained.
He further suggested that NLNG could domesticate its LPG pricing system and increase its local supply.
Mr Olarinoye said a kilo of gas usually sold within N500 and N600 now sells within N800 and N900 per kilogramme within Lagos and Ogun states.
