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Cooking gas price hits N7,000 as NLNG blames marketers’ infrastructure

THE rising cost of cooking gas has been blamed on the inadequacy marketers’ infrastructure to take up Liquefied Petroleum Gas supply, the management of Nigeria LNG Limited has said.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) had earlier said that the major cause of the rising cost of cooking gas was lack of adequate supply.

The marketers claimed that foreign investors underestimated demand in the Nigerian market resulting in marketers venturing into importation of the product.

IPMAN advocated that the government should let NLNG supply more gas to the market to reduce the costs.

According to reports from consumers, the cost of refilling a 12.5-kilogramme cylinder of LPG had risen to as high as N7000 in some states.

The marketers had also urged the government to remove cooking gas from the list of commodities subject to the payment of value added tax.

However, in a response to the claim made by the IPMAN, the marketing manager of NLNG, Austin Ogbogbo, stated that the marketers did not have enough infrastructure to take up the gas the company supplied.

He said, “NLNG has grown its capacity from 50,000 metric tonnes per annum to 450,000 metric tonnes per annum of LPG in the past 14 years.

“Nigeria needs 1.2 million metric tonnes per annum, but even the 450,000 we produce cannot be absorbed by the market’s current infrastructure.

“We only operate in the midstream sub sector of the industry so we are only responsible for supplying to the market.

“The downstream players are responsible for the distribution to the end users, and also building the infrastructure to ensure it is done efficiently. It is out of our scope.”

Ogbogbo assured the public that the company would grow its LPG capacity if it confirmed that distributors could take up additional supply.

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Naija Times