DPR, PPPRA to blame for rising cooking gas price ─Marketers

*The increasing price of cooking gas in Nigeria has been attributed to excessive administrative and other sundry charges by the Department of Petroleum Resources, Petroleum Products Pricing Regulatory Authority, and other agencies

Alexander Davis | ConsumerConnect

The current sharp increase rise in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in Nigeria, has been attributed to excessive administrative and other sundry charges by the Department of Petroleum Resources (DPR), and Petroleum Products Pricing Regulatory Authority (PPPRA), among others.

Insufficient supply of LPG to local marketers by the Nigeria Liquefied Natural Gas (NLNG) Limited, which is the major supplier of the product in-country, has also contributed to the scarcity of the product and the resultant increase in price lately, ThisDay’s investigation revealed.

The report indicated that the numerous charges by the regulators have forced the marketers of the consumer product to increase price at their stations.

This development has resulted in consumers having to pay more for cooking gas, which the Federal Government is projecting as the preferable cooking fuel.

The investigation also revealed some of the marketers and LPG terminal operators likewise attributed the sharp rise in the price of LPG to the difficulty in accessing foreign exchange (Forex) at the official Central Bank of Nigeria (CBN) rate.

The dealers said that they could not access Forex in the parallel market due to its exorbitant rate, according to report.

Lately, the price of LPG has gone up that many Nigerians now find it difficult to continue using the fuel.

The report stated, for instance, in some gas stations in Lagos, the country’s commercial nerve centre, to fill a 12.5kg cylinder costs about N4,200, which is about N1,000 higher than the price before November 2020.

The survey showed the situation has forced some low-income Nigerians, especially the local food vendors, to resort to using firewood and sawdust to cook.

One of the marketers, who pleaded to remain anonymous, said new charges by the PPPRA, DPR and other agencies were part of the reasons for the high cost of LPG in the country.

The marketer said: “Some of the reasons why gas price is going up are, one, new charges by government agencies -the PPPRA, DPR, etc.

“Also, you know that the product is in dollar and with the fall in Naira value, the cost of importing the product is going up.

“Again, you know that during winter period, there is always an increase in the use of gas, especially in Europe where most imports are coming from, thus making the product to be in high demand and costly.

He noted: “Another major factor is the fact that local supply is still less than 40 per cent of total local consumption, thus making most depot owners to do more of imports with attendant effect on cost. So, it is not our fault, there is nothing we can do.”

Rather than give more attention to export, the NLNG should ensure that it makes more products available to marketers to boost supply and force down the high price, said he.

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