Demand for LPG, or cooking gas, is declining due to rising cost of living, despite several steps taken by the federal government to increase supply and encourage local consumption, Channels Television said. Reports with authority.
Channels Television’s research team learned from retailers on Friday that demand for cooking gas has declined “due to rising inflation”, resulting in lower purchasing power for consumers.
“Demand from consumers is low because inflation has pushed the prices of goods and services beyond what common people can bear,” a retailer in the Isolo region told Channels TV.
The Nigeria Bureau of Statistics announced on Thursday that the inflation rate rose to 29.90% in January from 28% in December.
According to market research, the price of 1kg of cooking gas has increased from 1,000 Naira in January to around 1,200 Naira in some regions.
Our team has learned from reliable sources that two 20 ton LPG vessels belonging to the Nigeria Liquefied Natural Gas Company are currently discharging products at Lagos Port at a landed cost of N21 million each. . This makes the landing cost of 1kg approximately N1000.
Recall that the price in December was about 16 million naira per 20 tons.
According to sources familiar with the matter, the middleman is currently selling his 20 tonne boiler of cooking gas for between his 22 million and his 23 million naira without passing on the higher prices to consumers. The situation is even worse for retailers who do not.
“If the landed cost is N1000 per kg, at what price will the product be sold to the marketer now?” The gas market is no longer attractive because consumers no longer patronize us. Currently, most people rely on charcoal, firewood, or at most kerosene,” the source added.
DapoOlatunbosun,chairman of the NigeriaOil and Gas MarketOperatorsAssociation, told Channels TV that unlike last year when prices were influenced by intermediaries,pricesarenowcontrolledbyrisinginflation and marketforces. he said.
“ThesupplyofNLNGwasconstantandbecausewewerenotsilent,theintermediariescouldnotinfluencethepriceastheyusedto.”“Ifwewerenotspeakingout,“Itcouldhavebeenmuchworse,”hesaid.
This development echoesMrOlatunbosun’s earlier protest that the price of a 12.5kg cooking gas cylinder could reach N18,000 from December if the government does not addresscontinued price hikes by intermediaries.Thisfollows.
“Currently, we have a mix of both imports from independent distributors and NLNG, but The Supply is dominated by NLNG.
Market research carried out revealed that the price of 20 tonnes at the terminal increased from N10 million to N16 million in early October. This represents a 66% price increase in one month.
Depot owners attribute this sharp increase to foreign exchange devaluation and rising prices on the international market.
However, following protests from gas traders, the FG called the Nigeria Midstream and Downstream Petroleum Regulatory Authority into an emergency meeting, Channels TV has learnt.
The government’s supply intervention came as a result of former President Buhari’s declaration that 2020 onwards will be his decade of gas to promote both local production and consumption.
