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Thursday, May 26, 2022

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Price of cooking gas rises to N7,000 for 12.5kg cylinder

Cost of refilling a 12.5 kg cylinder of Liquefied Petroleum Gas (LPG) otherwise known as cooking gas has risen to as high as N7,000 in some states of the federation, from around N6,000 last month.

However, player in the sector are blaming the high cost of cooking gas on shortage of gas supply across the country.

The Nigeria LNG Limited said that marketers do not have enough infrastructure to take up its LPG supply.

The marketing manager of NLNG, Austin Ogbogbo said that the marketers did not have enough infrastructure to take up the gas the company supplied.

“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.

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“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 said.

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

Marketers have called for increase supply from the NLNG and also ask that the government remove the 7.5 percent Value Added Tax (VAT) on cooking gas.

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