Why Price Of Cooking Gas Is Rising- Marketers

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has attributed hike in the price of cooking gas to fluctuations in exchange rate, multiple taxes, scarcity of foreign exchange, among others.

Mr Bassey Essein, Executive Secretary, NALPGAM, said this in an interview on Sunday in Lagos.

Essein also said that another issue was the inability of marketers to frequently import Liquified Natural Gas (LPG), known as cooking gas, to boost the domestic supply.

He said that although the price of cooking gas was still high, when compared to the price sold last year, but had remained stable since the beginning of the year.

Essien said, “The source of LPG for sometime now has been predominantly from the Nigeria LNG and has never met the demands.

“This is because of the supply- demand gap and market dynamics. All these work in concert to affect the price. Hence, the price goes up.

“The inability to import LPG as frequently as before and to argument the inadequate domestic supply is due to fx, exchange rate and taxes are major factors.”

He called for more investment in gas processing sector in the country and urged the Federal Government to grant investors the necessary incentives that would encourage such.

“Remove taxes and tariffs on gas. Grant other incentives that attract investors.

“The penalty for gas flaring l learnt has been increased. Maybe it will work because if a company recognises the penalties paid on these, it might encourage the worthwhile investment in gas processing, he added.