The Nigerian Association of Liquefied Petroleum Gas Marketers price of refilling 5kg and 12kg domestic cooking gas cylinders will increase in a couple of days.
The marketers listed various reasons for the expected change in retail prices as Nigeria LNG continues to battle a 10-month-long supply issues.
The development is expected to put severe pressure on the finances of Nigerian households.
In June, the average retail price for refilling a 5kg cylinder of cooking gas decreased by 6.71% month-on-month from N4,360.69 recorded in May 2023 to N4,068.26 in June 2023.
Similarly, the average retail price for refilling a 12.5k cylinder of cooking gas decreased by 4.35% on a month-on-month basis from N9,537.89 in May 2023 to N9,123.25 in June 2023.
Although Olatunbosun Oladapo, President of the Nigerian Association of Liquefied Petroleum Gas Marketers did not specify the extent of the increase, he attributed it to the escalating international prices, elevated tax rates, and vessel costs.
Punch reports that other factors include forex scarcity and naira devaluation.
According to Oladipo, “It is starting next week because international prices have gone up. The prices of vessels have gone up and taxes are high, but consumers are not earning more.
“Their purchasing power has gone down. Everybody is crying. Consumers, middlemen, and retailers are feeling the impact because business is now on the low side.”
The president of the Nigerian Association of Liquefied Petroleum Gas Marketers added that while the price increase is unfortunate, it is inevitable.
In his words, “The situation is very unfortunate because prices are going higher. Nigerian consumers are passing through very difficult times because they can no longer afford gas.”
In another development, Nigeria LNG (NLNG) has said that the force majeure it declared in October 2022, due to widespread flooding that disrupted supply will continue.
Reuters reports that Andy Ode NLNG spokesman explained that the challenges subsist due to the unavailability of upstream gas suppliers’ major liquids evacuation pipelines occasioned by sabotage and vandalism, still impacting feed gas supplies.
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