As the prices of Liquefied Petroleum Gas (cooking gas) rise by about 140 per cent in many locations across the country, marketers of the commodity are perfecting plans to massively import the product to make it more affordable and available.
Findings showed that cooking gas prices jumped from an average of N1,000 per kilogramme in January and February this year to as high as N2,400 a few days ago. Industry sources told our correspondent that the regulator is issuing licences for the importation of cooking gas.
This is also because local producers of LPG have been unable to meet domestic demands for gas, according to operators. For example, the sources stated that there is a decline in LPG supply from the Dangote Petroleum Refinery due to internal utilisation, not because the refinery exports, as is being speculated.
“The recent decline in LPG supply from the Dangote refinery, which has created a crisis in the domestic market, isn’t because of exports but is due to their internal utilisation for enhancing petroleum production capacity,” a source familiar with the development, who spoke in confidence due to the lack of authorisation to speak on the matter, stated.
The source further explained that this had to do with the refinery’s recent ramp-up to 700,000 barrels per day amid higher global fuel demand. Consequently, marketers were allowed to bring in enough LPG to end the current scarcity and crash the prices, which have risen from less than N1,000 earlier in the year to about N2,400 per kilogramme.
