The Liquefied Petroleum Gas Retailers (LPGAR) a branch of NUPENG, has decried the return of liquefied Petroleum Gas (LPG) price rise which has led to an increment of up to one thousand naira (N1,000:00) for 12.5kg size or eighty naira (N80:00) for 1kg within the last two weeks throughout the country.
A statement signed the Branch Chairman, Mr. Chika Michael Umudu, the branch union said consequently, the price of the average size cylinder (12.5kg) is now being sold at about N8500:00 from N7500:00 two weeks ago in Lagos and neighboring states. Similarly, in parts of northern Nigeria, Southeast and South-South the price has risen to N9000:00/N9500:00 from N8000:00/N8500:00. Prices at the depots have similarly risen to about eleven million naira (N11,000,000:00) for 20 metric tons from ten million naira (N10,000,000:00) and less sold about two weeks ago.
According to him, the worrisome aspect of this development is that it has continued to rise on daily basis for weeks now but began to escalate in the last one week leading to significant increases in both depots and retail outlets.
The union recalls that similar price rise occurred in 2021 leading to the sale of 12.5kg gas up to ten thousand naira (N10,000:00) in late November and early December 2021 amidst supply shortages.
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.
Recall 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.
It supposes that enabling infrastructure would have been in place before the launch but the events immediately after the launch prove the contrary.
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, Umudu said.
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 prices in dollars.
Similarly, the branch union believes that more local production should be encouraged to minimize if not to eliminate importation.
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, the branch union said.
