Nigerian cooking gas prices hit record high, NLNG blames global market conditions
The Nigerian Liquefied Natural Gas Company Limited (NLNG) has denied responsibility for the recent price hike in the country’s cooking gas.
In a statement, NLNG’s General Manager, External Relations, Andy Odeh, described media reports insinuating that the company had increased its prices as “speculative and indicative of a fundamental misunderstanding of Nigeria’s intricate market dynamics.”
Odeh explained that the price of cooking gas in the domestic market depends on several factors, including the forces of supply and demand and external factors, such as changes in exchange rates and the skyrocketing price benchmarks linked to crude oil prices.
He also pointed to the Panama Canal drought-induced vessel scarcity, which has recently affected energy prices and has cost implications for imported LPG.
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Odeh added that NLNG has remained committed to delivering domestic LPG to locations as close to the market as possible by diversifying delivery points starting with Lagos in 2023, fostering competition among terminal owners and ultimately reducing consumer supply chain costs.
NLNG also promised to collaborate with relevant industry stakeholders to ensure the reliable supply of its LPG production to the domestic market at prices that reflect the market.
Analysts: Other factors at play
Analysts have said that several other factors may be contributing to the high price of cooking gas in Nigeria, including:
Increased demand: As the Nigerian economy grows, so too does the demand for cooking gas.
Infrastructure constraints: Nigeria’s LPG infrastructure is still underdeveloped, which can make it difficult and expensive to transport and distribute the product.
Government policies: Some government policies, such as import duties and taxes, may also be contributing to the high price of cooking gas.
