Gas Cylinder

 The cost of refilling a 12.5kg cylinder of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, has surged by 34.6 per cent within one week, climbing to N17,500 from N12,750 recorded the previous week.

Checks by Vanguard across major markets showed that the retail price of 1kg of cooking gas now ranges between N1,350 and N1,500, depending on the location.

Speaking in a phone interview, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr. Olatunbosun Oladapo, attributed the sudden price hike to the recent strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which disrupted supply chains, particularly in the South-West.

He explained that LPG pricing is heavily driven by the forces of demand and supply. “When there is limited supply of the product, demand increases, and this naturally pushes up the price,” he said.

Oladapo noted that during the strike, many gas plants were shut down, leaving most operators with little or no stock. He added that the Dangote Refinery, considered a key supplier in terms of both availability and affordability, has yet to release loading invoices to many marketers who have pending orders for over three weeks.

“Because of the delay, our members were forced to turn to competitors, who took advantage of the situation to raise their prices. No marketer wants to leave his plant empty, so they had no choice but to buy at higher rates,” Oladapo lamented.

He appealed to Dangote Petroleum Refinery to begin releasing products to more marketers to ease the current supply pressure. According to him, improved access to supply will help stabilise prices in the coming weeks.