Abuja: As Nigerians grapple with rising Liquefied Petroleum Gas (LPG) prices, the Liquefied Petroleum Gas Retailers (LPGAR) have urged local LPG producers to prioritise supplies to the domestic market before exporting. Mr Promise Ajujumbu, the Public Relations Officer of LPGAR, Nyanya Branch, made the call in an interview with the News Agency of Nigeria (NAN).
According to News Agency of Nigeria, Ajujumbu attributed the recent surge in LPG prices to global market pressures and local supply challenges. NAN reports that cooking gas is currently being sold at N2,000 per kg by roadside retailers, while major marketers, such as NIPCO, sell at N1,600 per kg. Consumers have expressed worry and dissatisfaction about the hardship caused by the recent development and urged the Federal Government to intervene to mitigate the effect.
Ajujumbu explained that inadequate local supply and rising logistics costs due to the global energy crisis and market pressures are worsening the situation, pushing up the cost of LPG, kno
wn as cooking gas nationwide. He alleged that there were concerns within the industry that some top local LPG producers were not supplying sufficient volumes to the domestic market. He emphasized the need for government and key industry players to work together to ensure adequate supply to the local market and stabilize prices for consumers.
He highlighted that the supply shortfall had significantly increased costs for retailers, noting that the price of LPG had risen from about N900,000 per tonne before the current scarcity to about N1.7 million per tonne. Ajujumbu stressed the importance of adequately supplying the local market before considering exports. He also mentioned that the increase in diesel prices has pushed up transportation and distribution costs, as diesel is widely used in the supply chain.
Reacting to the development, Louis Ibah, the spokesman for the Minister of State for Petroleum Resources (Gas), Dr. Ekperikpe Ekpo, dismissed claims that locally produced LPG was being exported at the exp
ense of domestic supply. Ibah stated that no producer was currently exporting LPG meant for the Nigerian market. He added that the ban on LPG exports announced by the minister remained in force and was being enforced by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
He further noted that marketers have intensified efforts to boost supply and have also committed to importing additional volumes of LPG to meet growing domestic demand. He mentioned that the new Seplat Gas facility is expected to commence LPG supply to the domestic market in July, a development that will significantly improve product availability across the country.