NLNG gives reasons for surge in cooking gas prices

 

The General Manager, External Relations, Nigeria LNG Limited (NLNG), Dr. Kudo Eresia-Eke has said infrastructure bottlenecks and not scarcity are the real reasons behind the rising cost of cooking gas or Liquefied Petroleum Gas (LPG) nationwide, The Nation reports.

Eresia-Eke said three factors namely; shortage of terminals for the discharge of LPG in the country, storage facilities at the terminals and delays in getting the product from the terminals, have resulted in the increase of price, from N2,700 to between N4,000 and N4,200 for a  12.5 kilogramme (kg) cylinder in Lagos and environs. He stated that hitches in areas such as transportation of LPG from the NLNG’s base in Bonny, Rivers State to Lagos and distribution of the product to consumers, is the bane of the sub-sector.

“The terminals are not only limited, but were made to give priority to supply of white products such as petrol, diesel and kerosene. This has made it difficult for LPG vessels to discharge its content promptly enough,” Eresia-Eke said. Other problems, according to him, are lack of adequate facilities for storage of LPG at the terminals and delays in accessing the product from the terminals.