In a recent development, the Nigerian Association of Liquefied Petroleum Gas Marketers has raised serious concerns over alleged price manipulation and restricted access to gas perpetrated by terminal operators.
Led by the association’s president, Oladapo Olatunbosun, the group directly accused certain terminal operators of acting as “cabals” in the industry.
According to Olatunbosun, these operators acquire gas at a lower cost from the source and subsequently sell it to marketers at significantly higher prices.
This accusation was presented before the Senate, where Olatunbosun emphasized the adverse effects on ordinary Nigerians.
Despite Nigeria being a significant producer of gas, the alleged actions of these cabals have reportedly led to inflated prices, making it challenging for the average citizen to afford.
Olatunbosun specifically identified terminal operators, including NAVGas, NIPCOPLC, Matrix Energy Ltd, Prudent Energy Ltd, Shafa Energy, Techno Gas, StockGap Ltd, Mobil, Pan Ocean Limited, NNPC, OLogbo, NSPC Apapa, SHELL, Dozzy LPG terminal, as contributors to the problem.
He criticized the pricing structure, stating that while Nigeria Natural Liquefied Gas (NNLG) sells gas to these operators for less than N9 million, the terminal owners sell it for a much higher amount – N16.8 million for 20 metric tonnes.
Highlighting the impact on consumers, Olatunbosun noted that gas prices have surged to the point where individuals pay a minimum of N1,200 per kilogram.
He questioned the affordability of such high prices, especially for students and low-income workers.
The association warned of potential future consequences if immediate measures are not taken.
They projected that by December, the price of a 12.5kg gas cylinder could reach N25,000, making it a luxury product accessible only to the wealthy.
Olatunbosun underscored the need for regulation and intervention to address these challenges, expressing disappointment in the lack of interference from Nigeria Natural Liquefied Gas (NNLG).
In response, the Senate chairman on gas, Jarigbe Jarigbe, assured the marketers that the Senate would take decisive action.
He acknowledged the significance of the issue, stating that it goes beyond individual businesses to a matter of national importance.
Jarigbe assured the marketers that the Senate, in collaboration with the executive, would work towards rectifying the situation to ensure fair pricing and accessibility for all Nigerians.
