The price of Liquefied Petroleum Gas (LPG), otherwise called cooking gas has increased in the last few weeks in Lagos, Abuja and many other states due to supply hitches.
It was observed that the cost of 12.5kg LPG was N4, 200 in Shomolu and adjourning areas in Lagos, which was a far cry from the N3, 000 it sold for in previous weeks.
However, even more worrisome is the fact that the product’s supply became scarce.
Retailers of the product said that they were constrained to dispense the little they had because of the supply hitch they experienced from suppliers.
A retailer, Lucky Nwachukwu, in Shomolu, said: “Sadly, the business of cooking gas is not profit yielding. I am still selling the product to earn a living as the profit margin is low.”
A survey of LPG retail outlets in Abuja showed that the price has increased by over 13 per cent.
For instance a 12.5kg cylinder of cooking gas increased to between N4,000 and N4,300 from between N3,500 and N3,800 some weeks ago in the city.
A user of cooking gas,Mrs. Fidelia Chidi ,told our reporter that 12.5kg of the product which used to sell for N3,800 at Lugbe, Abuja rose to N4,000 two weeks ago and to N4,300 last week.
The Chairman of the National Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr Basil Ogbuanu, said that the increase was due to demurrage and other costs incurred by the operators.
“The price of 12.5kg of the product has risen from N2,500 in May 2016 to N4,000 within Lagos and Ogun states,” he said.
“In other states, the price has risen from N2,700 and N3,700 to around N4,500 and N5,000 and the product is scarce in some places,” said the Chairman of Liquefied Petroleum Gas retailers (LPGAR), Mr Chika Umudu.
He said that his members used to spend days at LPG plants to get their supply, while many others had no supply.
Mr Umudu said it was unfortunate that the price increase came at a time when many Nigerians adopted the use of clean energy for domestic use.
The General Manager, External Relations of Nigeria Liquefied Natural Gas Limited, Dr Kudo Eresia Eke, said that the increase in price of cooking gas was caused by infrastructure challenges, adding that only two terminals were dedicated to the supply of LPG in Niger.
