Tuesday, January 18, 2022
HomeBusinessMarketers halt imports as cooking gas price inflates by 240%

Marketers halt imports as cooking gas price inflates by 240%

The Nigerian Association of Liquefied Petroleum Gas Marketers, NALPGAM has issued an open letter to the Minister of State for Petroleum Resources, Chief Timipre Sylva, urging the minister to provide urgent intervention in the skyrocketing price of Liquified Petroleum Gas, popularly called cooking gas, in Nigeria.

This comes as a result of a recent hike in the price of cooking gas by 240 per cent, which have caused marketers to halt the importation of the commodity.

The open letter was signed by the National President, NALPGAM, Olatunbosun Oladapo, and the Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers, Bassey Essien, who told newsmen that the reintroduction of customs duty and Value Added Tax on imported LPG were the basic reasons for the halt.

Essien while providing further explanations said there were several other issues, stressing that if the halt in LPG imports should drag further, the supply of the commodity domestically could suffer severe drop.

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He said, “The NLNG supplies LPG to the terminals and these terminals sell to the marketers and at times in a day, the price can go up by about three times.

He added that further investigations have shown that the cost of the product increased by 240 per cent for 12.5kg, jumping from N3,000 to N10,200 between January and October.

Meanwhile, about 65 per cent of LPG is imported into Nigeria, while domestic production accounts for 35 per cent, hence could further shoot up cooking gas price if the situation persists.

NALPGAM is the umbrella body of operators of LPG bottling plants licensed by the statutorily empowered government agencies to carry out the business of safe bottling of cooking gas.


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