October 18, 2017

Nigerians to pay hefty prices for LPG

Nigerians to pay hefty prices for Liquefied Petroleum Gas (LPG) following a rapid price increment of 48%. However, NALPGAM President, Mr. Basil Ogbuanu, supposed that ALGASCO, operator of the Apapa gas terminal of Navgas, increased LPG price without justification, and he is accusing the company of ordering other off-takers, who use its terminal not to sell to marketers at a certain price.

Mont Belvieu LPG price is the international pricing model used by the Nigeria LNG Limited, NLNG to sell gas to the domestic market and has not increased its price. The marketers are consequently protesting against what they call “the sudden increase of LPG price” by the company, and are urging the company to reverse the price from the current price of US$20,168 to the normal price of US$21,390 for 20 metric tonnes of gas.

According to a statement signed by the Executive Secretary of NALPGAM, Mrs. Makinwa Omoyemi, affirmed that, currently, the price of crude oil is reducing, and this is one of the parameters used in fixing the price of LPG by Nigeria LNG Limited.

He said “We therefore see no justification as to the sudden increase, which we believe will have an adverse effect on the LPG consumption across the country.”

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