NLNG speaks on galloping Cooking Gas prices
Muyiwa Ige(LPG Stakeholder and Consultant)
Nigeria Liquefied Natural Gas Limited in Bonny Island, Rivers State, has officially revealed that LPG vessel scarcity, unfavorably high foreign exchange rates, and rising oil prices, are responsible for the recent hike in cooking gas prices in the country.
The ex-depot price of 20 Metric Tons of Cooking Gas at the nation’s LPG Terminals has risen from N12m just a few months ago, to between N16.35m-16.6m, at this present time.
The product is currently quite scarce, and is only available in a few LPG depots in the country.
The top gas producer, threw some light on how these factors, in tandem with domestic macroeconomic developments and some international factors, have resulted in the shrinking supply of Liquefied Petroleum Gas (Cooking Gas) in the country.
NLNG stated, “The domestic LPG market, like any other, is subject to dynamic market forces and various external factors.
“Such factors as changes in exchange rates, escalating price benchmarks mirroring crude oil prices, and the Panama Canal drought-induced vessel scarcity impacting transport costs, especially for imported LPG, have had significant effects on energy prices in recent times and could undoubtedly be some of the reasons for recent price hikes witnessed in the domestic market’’.
NLNG firmly affirmed that its efforts have been strategically instrumental in the tremendous growth of the Domestic Cooking Gas Industry, constantly supplying up to 450,000 Metric Tons per annum to the market via its LPG Off-takers.