The Liquefied Petroleum Gas Retailers Association (LPGAR) has called on the federal government to establish more local LPG production plants, and encourage storage and transportation of the product to avert a price hike.
The association’s branch national chairman, Ayobami Olarinoye, made the remarks in an interview with the News Agency of Nigeria (NAN) in Lagos on Friday.
Olarinoye said that the price of LPG had been going up in the last four weeks, but retailers had been largely bearing the burden.
“This is why the rise has not substantially reflected in retail prices,” he said.
He attributed the recent price increase to the depreciation of the naira and the rise in international LPG prices.
“The Nigerian LPG market is often priced according to the international market because of the country’s dependence on importation for a substantial amount of LPG it consumes,” he said.
Olarinoye advised the government to work closely with NLNG and LPG importers to provide incentives that would make the product affordable to Nigerians.
He also suggested that NLNG could domesticate its LPG pricing system and increase its local supply.
“A kilo of gas that usually sold for between N500 and N600 now sells for between N800 and N900 per kilogramme within Lagos and Ogun states,” he said.
The association’s call comes at a time when Nigerians are facing a number of economic challenges, including rising inflation and fuel prices.
The government has said that it is committed to providing affordable energy to its citizens, but it is unclear what measures it will take to address the rising price of LPG.
