Gas retailers are sounding the alarm, warning that the price of a 12.5kg cooking gas cylinder could surge to N18,000 by December if the Federal Government does not intervene to regulate the actions of terminal owners.

Olatunbosun Oladapo, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, raised these concerns about the soaring cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. He points to an alarming increase in gas prices at terminals, where rates have surged from an average of ₦9 – ₦10 million per 20 metric tons to a staggering ₦14 million per 20 metric tons, according to reports from The Punch.

Expressing his apprehension, Oladapo said, “There is a ridiculous hike in gas prices going on right now, and I am afraid that if the Federal Government does not step in to checkmate the activities of these terminal owners, prices could reach as high as N18 million per metric ton by December. This means that a 12.5kg cylinder could cost as much as N18,000.”

He attributes this unjustifiable price hike to terminal owners who, he alleges, are exploiting the excuse of a high foreign exchange rate to increase prices, causing significant hardship to the general population.

Oladapo noted that there is no reasonable justification for this price surge, especially since the Nigerian Liquefied Natural Gas Limited (NLNG) continues supplying the gas market. He said, “NNPCL currently takes 59 percent of the gas produced by NLNG, although NLNG has also increased its price from N6 million to N8 million. Because NLNG has increased prices, NNPCL, and terminal owners have raised prices to N14 million.”

“The price increase that would take effect is not retailers’ fault. It is the fault of NLNG and terminal owners. Even NNPCL is hiding because they are now privatised to increase prices. As of last week, 1kg was N800 at the terminal, now N1,200, and could reach N1,500 by December if care is not taken,” he said.

Source- Business Day Newspaper.