Nigerian LNG Limited (NLNG) has blamed the upswing in cooking gas prices on three major factors, around domestic macroeconomic developments as well as global factors. The company also indicated that it would sustain the market with about 1.3 million metric tons of cooking gas.
In a statement yesterday, the company said: “The cooking gas market is affected by many factors, including currency fluctuations, rising oil prices, and a shortage of ships due to the Panama Canal drought. These factors have had a major impact on energy prices in recent months, and are likely some of the reasons for the recent price increases in the domestic market.
Despite these challenges, NLNG said it is committed to ensuring the reliable supply of its LPG production to the domestic market at prices that are reflective of the market. The company is collaborating with relevant industry stakeholders to achieve this objective and will remain focused on achieving its mission.
The rise in cooking gas prices has been a major concern for Nigerians in recent months. The price of 1kg of cooking gas has gone up by 61 percent to N1,200 from N696 it sold in June 2023.
NLNG is the largest supplier of LPG in Nigeria, and its commitment to sustaining the market with 1.3 million metric tons is a welcome development. However, it is important to note that the company is facing its own challenges, such as feed gas challenges.
The government needs to play its role in addressing the factors that are contributing to the rise in cooking gas prices, such as the high cost of foreign exchange and the scarcity of vessels. The government should also work with NLNG and other stakeholders to ensure that there is a steady supply of cooking gas to the domestic market at affordable prices.tunesharemore_vert
