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Adewale Sanyaolu
Unless urgent steps are taken, consumers may have to pay more for Liquefied Petroleum Gas (LPG), popularly called cooking gas during the yuletide as price of the commodity has skyrocketed by 73 per cent.
Confirming the development to Daily Sun, the Branch Secretary of Liquified Petroleum Gas Retailers (LPGAR) Branch of NUPENG, Mr. Olukayode Solomon, said the Association is dissatisfied with the sudden hike in price of cooking gas in Nigeria by tank farm (LPG depots) operators.
He lamented that, what appears to be a deliberate reduction in supply or rotation of supply amongst tank farms has led to about 73 per cent increment in price of the productwithin one week. He however cautioned that the increment could persist as the Christmas and New Year approach.
Olukayode explained that the increment began about a month ago but did not significantly reflect in the price sold to end-users because retail outlets had absorbed the difference believing it would soon normalise.
But according to him, without any sign of imminent supply or pricing crisis, the price in the last one week suddenly skyrocketed, hitting about 73 per cent.
‘‘Just a week ago in Lagos and some neighbouring states, 12.5kg LPG was sold between N2,600 and N3,000 in retail outlets. It is now sold between N4,000 and N4500 at retail outlets owing to sudden hike in the price by tank farm operators.
If this situation remains unchecked, it is capable of undermining the expected development of LP Gas sector in the country which has been championed by the government and other stakeholders over the years.’’
He added that Nigerians, especially the low income earners who are beginning to switch over to cooking gas for both domestic and commercial uses are now being subjected to additional exploitation at a time of severe economic hardship.
The situation, according to him is already forcing many users to abandon their cylinders afor dirty fuels like firewood and sawdust despite the attendant health risks and resultant environmental degradation that result from those such energy sources.
‘‘Cooking gas retailers have to contend with end-users who often accuse them of been responsible for the increments. Unknown to most of the end-users, LPG retailers are the worst hit as they have been reduced to the status of mere agents toiling day and night to make LPG available to Nigerians often with little or no profits because of the monopoly of a cartel.
Our union over the years has been decrying what it views as manipulation of the sector by a few privileged individuals and business concerns in Nigeria including some multinationals operating in the oil and gas sector.
The people behind the business organisations benefiting from this arbitrariness are the same people that have been creating the impression within the government quarters that insufficient retail outlet in Nigeria is the problem militating against the deepening of LPG in the country. This they do in order to secure approvals and incentives for establishment of retail outlets to the detriment of small and medium size LPG businesses.
