Nigeria Cooking gas scarcity hits Kano, Lagos, Delta and other states

Liquefied petroleum gas, more commonly referred to as domestic gas, has become scarce in Lagos and several other states throughout the nation.

Our correspondents have identified the following additional states as being impacted: Katsina, Sokoto, Delta, Kaduna, and Kano.

 

The PUNCH reports that the increase in the cost of the commodity has been observed since the latter part of last month, resulting in a sustained price surge.

 

Previously, it was documented that gas terminal proprietors raised rates by 66% in October alone. The cost of 20 metric tonnes of cooking gas increased from N10 million at the start of last month to N16 million by the end of the month, despite the fact that NLNG is supplying them with 20MT of cooking gas for N9 million at this time.

 

A market investigation conducted by this publication over the weekend unveiled that the current black market price range for 12.5 kilogrammes of culinary gas is from N13,500 to N14,000.

 

As a result of insufficient quantities, some of the traders informed our correspondents that gas plant proprietors now sell to them for between N1100 and N1200 per kilogramme.

 

As of June, 12.5 kilogrammes cost approximately N8, 700. The price increased to N10,200 in September, and as of Saturday, it had once more risen to between N13,500 and N14,000.

 

Sunday, The PUNCH learned from Oladapo Olatunbosun, president of the Nigerian Association of Liquefied Petroleum Gas Marketers, that Lagos state is presently without sufficient culinary gas.

 

“At my gas plant, I exchange 1 kilogramme for N950.” Therefore, the general public should make every effort to avoid patronising establishments that lack gas facilities, as doing so would increase their own financial gain. Those individuals contribute to the problem that our nation is currently experiencing.

 

Similarly, our correspondent in Katsina found domestic gas to be scarce throughout the province.

 

The findings indicate that the scarcity was initially detected approximately two weeks ago, when a number of minor retailers informed us of its unavailability. Additionally, research has revealed that in the state, a kilogramme of heating gas costs no less than N1,400. There was no official explanation provided for the scarcity.

 

A scarcity of culinary gas has been observed in the metropolis of Sokoto State over the past few days, resulting in indiscriminate price increases.

 

As of Sunday, residents were observed ferrying their containers in pursuit of the commodity, according to our correspondent in Kaduna. According to the results, 5 kilogrammes sold for N5,500 at retail.

 

A correspondent from the adjacent state of Kano revealed that there has been a resurgence in culinary shortages, as residents are frantically purchasing the commodity.

 

An inquiry revealed that subsequent to the resurgence of the scarcity, marketers have abruptly increased prices; some fueling stations now charge N850 per kilogramme of culinary gas, while others charge between N900 and N950 per kilogramme.

 

Nonetheless, lengthy lines of purchasers are now typical at the majority of fueling stations that dispense the commodity.

 

On alternative marketplaces (black market), the price ranges from N1,110 to N1200 per kilogramme.

 

As of Sunday, November 5, 2023, investigations conducted by our correspondent in the metropolitan cities of Warri and Effurun in Delta State indicate that the cost of culinary gas has escalated to N1,100 per kilogramme.

 

In October, the commodity was priced at N800 per kilogramme in the twin cities.

 

When queried about the justification for the increase in price, a well-known petrol vendor in Warri, identified as Mr Igho, was unable to provide an answer.

 

A representative from the Public Communications Department of the Nigeria Gas Company, Warri, who requested anonymity due to his lack of authorization to address the media, refused to comment on the matter when contacted.

 

“Given the structure of the new NNPCL, it is not within my authority to interact with the press,” he bluntly informed our correspondent.

 

In the interim, reports from Abuja and Kwara indicated that consumers are not encountering any scarcity despite the continued elevated prices.

 

Roy, a resident of Karu in the AMAC Area Council of Abuja, informed our correspondent that although culinary gas was not in short supply in his area, the quantity he encountered was a combination of liquefied gas and purified gas that did not last as long as it once did.

 

“Therefore, the issue I am experiencing is that it liquefies.” This results in approximately 70% gas and 30% liquid remaining in the receptacle, irrespective of the product purchased, as opposed to the intended gas.

 

Thus, we were initially oblivious to the fact that shaking the cylinder consistently results in the submersion of the liquefied portion until we observed it. He explained that the event concludes approximately two to three weeks prior to its expected duration.

 

Sandra, an additional local, informed our correspondent that while domestic gas was not in short supply, it had increased in price.

 

“Today, I purchased petrol on Abacha Road in Mararaba. 12.5% for 13,500 Naira. She stated, “I would not say there is scarcity; rather, the price has increased.”

 

Cecilia, an additional resident of Kubwa, concurred, stating, “The product is not scarce in my region; rather, its price has increased. I purchased one kilogramme last Wednesday for N1000. It also does not last nearly as long as it once did.

 

However, an inquiry conducted in Kwara revealed that the commodity is readily accessible at the majority of fueling stations.

 

Chief Sunday Oladele, a dealer operating an outlet at Gaa Odota in Ilorin, informed our correspondent that petrol was available at his location and that it was priced at N1,200 per kilogramme.

 

“Cooking gas is accessible in the state of Kwara.” It is available at my outlet for N1,200 per kilogramme. No scarcity has been encountered thus far in Kwara. Additionally, I operate a petrol outlet in Ogbomoso, Oyo state, where the petrol is priced at N1,100 per kilogramme.

 

Olatunbosun asserts that at present, thirty percent of the culinary gas utilised domestically is supplied by the Nigerian Liquefied Natural Gas Limited.

 

Nigeria is purportedly the country with the most rapidly expanding LPG sector globally, with a projected LPG market size of $10 billion. This is supported by the country’s annual per capita LPG consumption increasing from 1.8 kilogrammes in 2015 to 5 kilogrammes in 2021. The Petroleum Products Pricing Regulatory Agency reports that domestic culinary gas consumption surpassed one million metric tonnes in 2020. It was stated that the consumption rate would make 2020 the first year in the history of the nation in which LPG consumption surpassed 1 million MT.

 

Olabosun additionally disclosed to our correspondent that the cost of culinary gas would have escalated from N16 million for 20 metric tonnes to N18 million if gas plant proprietors had not expressed concern regarding the escalating prices.

 

“In fact, prices would have soared even higher than they are at this moment, were it not for the commotion we have been generating. However, costs are starting to decline at conventional gas facilities. “It should not exceed N1000 per kilogramme, and it will continue to decline,” he further stated.

 

The federal government, according to a source, has summoned the Nigerian Midstream and Downstream Petroleum Regulatory Authority in response to escalating prices.

 

“In October, the NMDPRA was convened by the federal government, which reaffirmed its responsibility to restore rationality to the market.” Yesterday, a source stated that culinary gas prices would begin to decline at any moment, assuming all else remains constant. The source requested anonymity because he lacked authority to comment on the matter.

 

Olatunbosun had issued a warning in September that the cost of 12.5 kilogrammes could increase to N18,000 by December if the FG does not intervene to halt the terminal proprietors’ activities.

 

“At present, there exists an absurd surge in petrol prices. Should the federal government refrain from intervening to halt the actions of terminal owners, I am apprehensive that prices may escalate to N18 million per metric tonne by December.” “A 12.5 kilogramme quantity could therefore fetch as much as N18,000,” he informed our correspondent.

 

He claimed that terminal proprietors were “concealing under the guise of high foreign exchange to increase prices in order to exacerbate the suffering of the masses” and that the increase was unjustified.

 

However, terminal proprietors refuted the allegations and attributed the price increases to foreign exchange fluctuations and rising crude oil costs on the international market, as reported by our correspondent.