The Petroleum Product Retail Outlet Owners Association of Nigeria, PETROAN, has ascribed the increase in Liquefied Petroleum Gas, better known as cooking gas, in Nigeria to current international market pricing, middle-class activities, and political concerns.
Despite the fact that Nigeria produces a portion of the LPG utilized in the country, Francis Dimkpa, the chairman of the PETROAN in Rivers State, stated in an interview in Port Harcourt on Monday that LPG is traded at international prices in Nigeria.
Dimkpa revealed that some gas plant owners are unable to obtain LPG from Nigerian Liquefied Natural Gas (NLNG), causing prices to rise.
“It is incredibly distressing and difficult to understand how a country like ours, which produces LPG, also known as cooking gas, is seeing such a significant increase in the price of residential gas,” he said.
“However, I believe it is linked to the international price of LPG. I’m not sure whether we all understand that LPG in our country is not traded at a domestic price but rather at an international price. NLNG usually transports this product to Lagos before arriving in Port Harcourt.”
“To some extent, we also import LGP. The LPG business is engulfed in a tangle of diplomatic and political problems, with registered LPG plants having no direct access to NLNG. There are numerous political off-takers in place, making LPG price secondary before it reaches main consumers.
Dimkpa also urged the government to intervene and regulate LPG prices, noting that retail store owners are eager to buy straight from NLNG.