Energy
NUPENG cries out as cooking gas price rises again
Prices of liquefied Petroleum Gas, LPG, also known as cooking gas, are again on the rise after declining at the beginning of the year.
The NUPENG branch of Liquefied Petroleum Gas Retailers Association has decried the increase of cooking gas prices across the country.
Current market prices revealed an increment of up to N1,000 for 12.5kg, and N80 for 1kg within the last two weeks.
Within Lagos and neighbouring states, 12.5kg is now being sold for N8,500 from N7,500, while in Northern, Southeast, and South-South, the price has increased to N9,000/N9,500 from N8,000/N8,500.
Depots prices also increased significantly as 20 metric tons of cooking gas is now being sold for N11 million as against N10 million.
Chairman of the Association, Chika Michael Umude, described the situation as worrisome, noting that the increase of the product is now on a daily basis in both depots and retail outlets.
In a statement obtained by newsmen, Umudu said “the union, therefore expects the government to come up with clear policy direction for the development of LPG in the country to forestall the ugly situation.
“LPG as a clean energy has steadily been embraced by low income earning Nigerians in the last seven years against previous years when it was seen as the preserve of the rich.
“The branch union considers as an irony that such price rises are happening at the time when government is, through policy statements, assuring Nigerians of adequate supply of the product at affordable prices”, he said.
National Daily reports that between December 2020 and early months of 2021, the government through its various programmes launched gas expansion programme often tagged “Gas Decade” aimed at not only making LPG available to all Nigerian homes irrespective of income level but also to expand the use of gas for other purposes such as automobile and public/private electric generation.
He explained that enabling infrastructure would have been in place before the launch of ‘Gas Decade’ initiatives in 2020.
“This is not equally good at this time when efforts should be at the top gear to expand the use of LPG in the country as a means of reducing environmental pollution, deforestation and desertification.
“The union, therefore, charges the government to revisit its gas expansion programme and to involve all stakeholders in the process. The branch union also decries the situation where gas produced in Nigeria is priced in dollars.
“Similarly, the branch union believes that more local production should be encouraged to minimize if not to eliminate importation,” he said.
Umudu also noted that the branch union considers as unfortunate a situation where major marketers, including the IOCs, are prioritizing retailing and related activities against their expected major role which is production.
“This is in essence killing mass employment and local participation in the sector. No economy grows where small local enterprises are not encouraged.
“It is, therefore, expected that major marketers in the sector should concentrate in high capital/technology investments such as LPG production and establishment of tank farms which would boost the country’s economy and create employment.
“This is against the trend in the last 15 years when retailing and other ‘briefcase’ business activities have been prioritized by the major companies to the detriment of small businesses and supply stability. This is because it has been proven beyond every reasonable doubt that absence of adequate product is the bane of the LPG development in the country,” he said.