Terminal operators have significantly raised the prices of Liquefied Natural Gas (LNG) or cooking gas by 60% in just the month of October, according to exclusive reports from The PUNCH.
A market survey conducted revealed that at the beginning of the month, the cost of 20 metric tons of cooking gas at the terminal stood at N10 million. However, by October 20, the price had surged to N14 million per 20 metric tons. A circular obtained by The PUNCH on Sunday indicated that the price had further escalated to N16 million per 20 metric tons as of October 21, 2023, marking a staggering 66% increase within a single month.
The circular, issued at 3:45 PM on Saturday by Allamin Daggash, identified as the marketing manager at Algasco/NAVGAS, stated that one metric ton of cooking gas was to be sold at N800,000 to gas retailers, translating to N16 million per 20 metric tons. Daggash attributed this increase to the depreciation in foreign exchange rates and rising international market prices.
However, contrary to Daggash’s explanation, 70% of the cooking gas consumed in Nigeria is supplied by the Nigerian Liquefied Natural Gas Limited (NLNG). Reports also indicate that NLNG currently sells 20 metric tons of cooking gas to marketers for N9 million.
Oladapo Olatunbosun, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers, confirmed the situation, stating that terminal owners did not import any products, with NLNG supplying the last consignment and another on the way. Olatunbosun criticized the terminal owners, accusing them of exploitation and seeking to profit at the expense of the common people.
Despite the claims of NLNG supplying the market, there was no response from the company or Algasco’s spokesperson, Friday Agwu, regarding the situation.