Gas Marketers Accuse Cabals of Inflating Gas Prices in Nigeria

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGM) has accused terminal operators of restricting access to liquefied petroleum gas (LPG) by inflating its price, leading to a surge in gas prices.

In a meeting with the Senate, led by its president, Oladapo Olatunbosun, the NALPGM expressed concerns about the interference of cabals in the gas distribution chain, which is affecting the availability of gas for ordinary Nigerians.

During the meeting, Olatunbosun pointed out that the Nigeria Liquefied Natural Gas (NLNG) has been consistent in its supply, but the influence of cabals has disrupted the accessibility of gas to the general population. He revealed that certain gas terminal owners, who obtain the product at a lower cost from the NLNG, sell it at significantly higher prices to consumers.

“The cabals are making it difficult for the average Nigerian to have access to gas. As of today, gas is sold by these terminal owners for N16.8 million for 20 metric tonnes, whereas NNLG sells to them for a little bit less than N9 million,” Olatunbosun emphasized.

Furthermore, the NALPGM criticized terminal operators who frequently cite foreign exchange rates as a reason for the escalating gas prices. Olatunbosun questioned this justification, stating that all transactions are conducted in the local currency, and there is no need for foreign exchange considerations.

He added, “You buy gas for N9 million from NLNG and pay in naira, then you sell the same gas for N16 million and blackmail the government. When people get to our plants and we tell them the price, they start weeping and cursing the government, whereas the government has done its best to make life bearable for the people.”

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Olatunbosun warned that if the actions of these market players are not addressed, gas could become a luxury product only accessible to the affluent. He further projected that, by December, a 12.5 kg gas cylinder would cost N25,000.

“The cabals might start selling 20 metric tonnes for N200 million, which means gas will sell for 2,000 per kg and N25,000 for 12.5kg,” he added.

Regarding the utilization of gas in Nigeria, Olatunbosun highlighted that the country’s gas consumption is low, despite its substantial population. He attributed the low usage to the high cost of gas. “We are operating 1.2 million metric tonnes per annum, but if we look at our population, we ought to be operating around 6 to 7 million metric tonnes per annum. However, due to availability and affordability issues, we can’t operate at that level yet,” he explained.

He warned that the rising gas prices would lead to deforestation as more Nigerians turn to wood and charcoal for cooking, further exacerbating environmental concerns.

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