Marketers: Hike in cooking gas due to multiple taxation, other factors

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has specified among other reasons for the increase in the cost of cooking gas exchange rate swings, various levies, and a lack of foreign currency.

This was stated in an interview on Sunday in Lagos by Bassey Essien, executive secretary of NALPGAM.

Another problem, according to Mr. Essein, is that retailers are unable to regularly import cooking gas, often known as LPG, to increase local supply.

Despite being higher than it was the year before, he said that the price of cooking gas had stayed steady throughout the year.

Mr Essien said, “The source of LPG for some time now has been predominantly from Nigeria LNG and has never met the demands. This is because of the supply-demand gap and market dynamics. All these work in concert to affect the price. Hence, the price goes up. The inability to import LPG as frequently as before and to argue the inadequate domestic supply is due to fx, exchange rate and taxes are major factors.”

The president of NALPGAM, Oladapo Olatunbosun, suggested that incentives may be set up by the government to promote exploration. Foreign and local investors might be encouraged to investigate and increase their investments in the gas industry, according to Mr. Olatunbosun.

He claimed that Nigeria had a plentiful supply both on land and underwater, so it was important to do it.

He said, “The price is coming down gradually. The only solution to bring costs down significantly is to improve supply.

“Why the price is a major issue is because the purchasing power of the masses is low.”