M a r k e t N e w s

Nigeria: Gas Marketers Decry Hike in LPG Price

Posted on : Wednesday, 1st October 2014

 

 
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has decried the hike in price of Liquefied Petroleum Gas (LPG) just as it urged the federal government to stop Algasco LPG Services from increasing the price of cooking gas.
 
Mr Basil Ogbuanu, the President of NALPGAM, who made the appeal while speaking with Daily Trust on telephone yesterday, said Algasco LPG Services, the nation's biggest gas supplier, had used its position to create a monopoly situation in the market.
 
Ogbuanu noted that Algasco was licensed to lift the product supplied by the Nigeria Liquefied Natural Gas (NLNG) Ltd, adding that the marketers' concerns followed the current hike in the price of cooking gas from Algasco's subsidiary, Navgas, with its terminal at Apapa, Lagos.
 
He added that increasing the price "without any justifiable reason would threaten the recent boom in the LPG market and erode the gains recorded over the years."
 
Ogbuanu, who noted that the terminal was the only one out of the three terminals that have gas now in Lagos said: "We appreciate the fact that LPG industry is a derivative industry and is still growing and that every businessman is in the business to make money but they shouldn't use their position to create unnecessary monopoly."
 
The NALPGAM President had alleged that Algasco increased the price of 20 metric tonnes of gas to N3.5 million from N3.3million.
 
The new price regime, Ogbuanu said, meant that 12.5 kilogramme cylinder of gas would cost more than N4, 000 at retail outlets.
 
He said: "Nigeria LNG Ltd, in conjunction with the federal government's intervention in this scheme has ensured the availability of this product and stability in pricing. Since the beginning of this year, the price has been between N3.1 million and N3.3 million per 20 metric tonnes.
 
"The only time we have this kind of crisis is any time this particular terminal is the only one that has gas. Before now, they did not have gas and the other two terminals that had gas were selling between N3.25 million and N3.3 million."
 
Meanwhile in a reaction, an official of Alagasco, Mr Umeh said: "We didn't hike the price, we only increased the price. When we received LPG, the price from NLNG was up so we had to increase the price.
 
"In August, last month, we were the only terminal that had product, we never increased any price. We didn't hear of any increase.
 
"You know it is not like a regulated market, so price goes up and down. When it goes up, we increase; and reduce when the price goes down.
 
"For example, the price NLNG is offering now is lower; we would have no choice but to reduce the price when we receive LPG again.

Source : ALL AFRICA
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