Liquefied Petroleum Gas marketers have appealed to the Federal Government to tackle the surging increase in gas prices, citing its destabilizing effect on their business survival.
The marketers under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM)
They said if nothing was done to the increasing prices, gas might soon be a commodity for the few rich in society.
Mr. Abideen Olatunbosun, the National President of NALPGAM, issued this appeal during the 36th Annual General Meeting (AGM)/Conference of the association in Ibadan.
- “It is very vital for me to say that the galloping hike in the price of gas in recent times stands as a big challenge to LPG marketers.
- “The government needs to find ways to ensure the stability of gas prices as well as make gas available to the common Nigerians. If nothing is done to the increase in price, gas will soon be a commodity for the few rich in our society.
- “As a country, we need to improve our gas utilization level. If we adopt gas, it will save our forest, improve the quality of our lifestyle and the economy will grow. The hike in the price of gas is a concern to all.”
In his presentation, Prof. Sunday Isehunwa, the keynote speaker, enumerated a range of obstacles facing the LPG market in Nigeria, including shifts in demand and supply, variations in natural gas production and consumption, fluctuations in prices, and challenges related to electricity pricing.
He noted that LPG generators are becoming increasingly popular in Nigeria, hence the need for training and retraining of technical manpower required to do necessary upgrades and replacements.
He said despite the wide variety of uses of LPG, and the potential for massive market growth, several bottlenecks are hindering large-scale increase in domestic LPG growth in Nigeria.
The Don listed some specific issues including an under-regulated retail market, shortage of LPG facilities, and disorganized LPG cylinder value chain as requiring urgent attention of the government.
- “There is a need for an increased supply of LPG to meet rising demand and curtail sharp practices by some operators. The Nigeria Liquefied Natural Gas (NLNG) has been the major supplier of LPG, but additional supplies are essential through functional refineries, adequate natural gas processing facilities, and removal of difficulties in importation when necessary.
- “Infrastructure development will enhance access to LPG by rural communities. Accessibility will also increase through increased economic empowerment of consumers and relatively low costs of products.
- “The removal of subsidies especially on kerosine, diesel, and petrol should be sustained. Security of supplies will be enhanced through improved general security in the nation and reduced pipeline vandalization.”