Marketers fear scarcity as cooking gas hits N1,500/kg

The Nigerian Association of Liquefied Petroleum Gas Marketers has expressed concern regarding the inconsistent supply and escalating prices of Liquefied Petroleum Gas, commonly referred to as cooking gas. They caution that this situation may lead to shortages and exacerbate the difficulties faced by millions of Nigerians.

The association reported that the price of cooking gas has now exceeded N1,500 per kilogram, while marketers are currently paying between N25.2 million and N26.2 million for 20 metric tonnes of the product, depending on the geographical area. Many other dealers are selling the product at prices ranging from N1,600 to N2,000.

Investigations conducted by our correspondent on Sunday verified that the price of this essential commodity has surged from below N1,000 per kilogram recently to approximately N1,500 or more, contingent on the location.

In a statement co-signed by the National President of NALPGAM, Edu Inyang, and the Executive Secretary, Mr. Bassey Essien, the association characterized this development as "sad and rather very pathetic."

"Nigerian citizens are now compelled to purchase cooking gas, which should be an accessible commodity, at an exorbitant price exceeding N1,500 per kilogram, while marketers are required to pay as much as N25,200,000 or, depending on the location, N26,200,000 for 20 metric tonnes of cooking gas.

"We are concerned that if this situation is not promptly addressed, citizens may react against the proprietors of gas filling stations," the marketers voiced their apprehensions.

They indicated that this situation has inflicted severe hardship on millions of Nigerian households, small enterprises, food vendors, and low-income families who depend on LPG for their daily cooking and sustenance.

The association noted that this situation is "seriously undermining the significant progress achieved by the government" in promoting the use of clean energy within the country. The group asserted that its members nationwide are encountering challenges in sourcing LPG due to "ongoing supply shortages, elevated depot prices, logistical challenges, and uncontrollable increases in operational costs."

“We observe that where product is available, it is sold at rates far beyond the reach of average Nigerians,” the association stated.

NALPGAM has issued a warning that the ongoing crisis is jeopardizing years of advancements made through Federal Government initiatives and investments designed to enhance LPG usage and encourage clean cooking energy.

"Although millions of Nigerians have adopted cooking gas due to the national clean energy transition agenda, it is disheartening to note that these achievements are in jeopardy as households face difficulties in refilling cylinders, small enterprises are succumbing to escalating energy expenses, and numerous families are reverting to firewood and charcoal, despite the severe consequences for public health, environmental degradation, and deforestation," it stated.

The association further cautioned that neglecting to promptly tackle the crisis could result in "increased food inflation, the downfall of small-scale LPG retail businesses, job losses, diminished investor confidence, and a considerable setback to Nigeria's clean energy and climate commitments."

NALPGAM urged the Federal Government, the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian National Petroleum Company Limited, domestic producers, terminal operators, international suppliers, and other stakeholders to take immediate and coordinated actions to stabilize the market before it deteriorates further.

The association proposed urgent measures to enhance the availability and accessibility of LPG across the nation. It also advocated for a greater domestic LPG allocation to the Nigerian market, transparent distribution of the available supply, the elimination of bottlenecks in importation and distribution, and interventions to stabilize retail prices.

It called for investment in storage and distribution infrastructure, as well as policies that promote affordability and sustainability within the sector. "We cannot remain passive while millions of Nigerian families endure hardship in silence as access to clean cooking energy becomes increasingly challenging and unaffordable.

“For years, the government and industry operators have worked to move Nigerians away from unsafe fuels. Those gains are now under serious threat. “Households cannot refill cylinders, small businesses are struggling to survive, and vulnerable households are returning to firewood and charcoal with dire health and environmental consequences.

“We therefore make a passionate and patriotic appeal to the Federal Government for urgent intervention to stabilise supply and pricing. NALPGAM is ready to collaborate to have lasting solutions, but decisive action is needed now,” the statement said.