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Blame LPG operators for increase in price of cooking gas — NALPGAM

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The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) have urged Nigerians to blame operators of gas terminals for the increase in the price of cooking gas.

Recall that the price of cooking gas has risen averagely by over 10 percent year on year as of July 2023.

National President of the association, Mr Oladapo Olatunbosun, speaking before a Senate panel on Monday explained that NNLG has been consistent with its supply of the product but a cabal was sabotaging this laudable effort for selfish gains.

Olatunbosun said, “The Cabals are making it difficult for the average Nigerian to have access to gas. As of today, gas is sold by these terminal owners for N16.8m for 20 metric tonnes whereas NNLG sells to them for a little bit less than N9m.

“When people go to fill their gas today, the least they get is N1,200 per KG. Imagine the pain of Nigerians. In the Nigeria of today, can a student or menial worker afford to cook a cup of beans with a N1,200 cost of gas?”

The Marketer explained to the Senate that Nigerians have no reason to buy gas for that price.

He said further, “Even countries like Cote d’Ivoire, Ghana and the rest are no match to Nigeria in terms of gas production, but the price of gas is cheaper in those countries that here where we are the second largest producer of gas in Africa after Algeria, yet our people cannot afford to cook with gas.

“We produce gas more than we import, in fact, the proportion imported is so insignificant, but these cabals have refused to allow Nigerians to enjoy the dividends of this production and the efforts put in by the government.”

The marketers further alleged that terminal operators usually state forex as one of the reasons for the increase in the prices of gas whereas the transactions were done purely in naira.

According to him, “These cabals have also made the practice of hiding behind forex but the question is does NNLG get paid in dollars, No.”

“All the transactions are completed in naira. What is the role of forex in this situation? Where is import evidence?

“You buy gas for N9million from NNLG and pay in naira, then you sell the same gas for N16million and blackmail the government.

“When people get to our plants and we tell them the price, they start weeping and cursing the government whereas, the government has done their best to make life bearable to the people.”

Olatunbosun noted that “If we don’t rise up and checkmate the whole thing, the gas would become a luxurious product available to only the rich.”

“By December, these cabals might start to sell 20 metric tonnes for N200m. This would mean that gas will sell for 2,000 per kg and N25,000 for 12.5kg.

“We are operating 1.2m metric tonnes per annum but if we look at our population, we ought to be operating around 6 to 7m metric tonnes per annum but due to availability and affordability; we can’t operate at that level yet.

“And when gas prices went up, the level of consumption dropped, at the moment, the level of usage is between 750,000 to 900,000 metric tonnes per annum.

“And our forest will suffer for it, people will go into the forest to get wood and charcoal to cook.”

Olatunbosun further noted that, “This is the kind of hardship that the few cabals have subjected poor Nigerians to which is worrisome particularly because it would continue to sell the wrong perception of this administration to Nigerians as not doing anything for the public.”

Speaking further, he explained that there must be room for reasonable profit-making for investment that will not jeopardize the interest of the masses interested in using gas for domestic purposes.

He stated, “They are investors, and we are not against them making profits because they put in their resources but what is not allowed in any part of the world is making super profit.

“These cabals don’t want the industry to grow, because if it grows, more investors will come into the business and they will see that there is a gap.

“So, they want the utilisation level to drop, so investors will not come in and they will be able to dominate and monopolise the industry.”

Responding, the Chairman, Senate Committee on Gas, Jarigbe Jarigb said, “I have listened to you on behalf of the committee and the Senate. You know that this administration has talked about improving gas supply, LPG and there is a new revolution in terms of Compressed National Gas for vehicles to cushion the effect of the Subsidy removal.

“As it concerns your complaints that NLNG sells to the terminal owners for about 10m  for 20 metric tonnes and they sell to you the markets with about N7m margin; which would have a negative multiplier effect in the value chain of that to the final consumer, this is what the Senate will not agree with. And I know the executive will not agree with it either because that is not the intention of Mr President.”

He expressed gratitude to the marketers for their courage in speaking out.

Jarigbe said, “I want to thank you for your courage because it would have been possible for you to compromise at this stage but you decided to speak up for the common man.

“I would do more than what you have done. When the Senate President on a lighter note said Nigerians have to breathe, it doesn’t mean for the very poor, it’s for Nigerians.

“We must allow ourselves to breathe, there is nobody that is not using gas today except those in the interior villages.

“With the issue of Climate Change and greenhouse gas emissions, we will do our best as a Senate to support you and support Nigerians because we were voted to represent our people and it is our job to protect them.

“We promise to match words with action,” he noted.