The price of 20 metric tonnes of Liquefied Petroleum Gas better known as cooking gas sold to marketers in Nigeria rose by over 29 percent witnessed a surge in the past two months, rising by 29 percent.
A previous report by The Punch indicated that terminal operators and importers increased the price of 20 metric tonnes of LPG to N5.3m on December 22 from an average of N4.4m a month ago, with retailers refilling a 12.5kg cylinder at between N4,000 and N4,500.
The price of the product increased further this month, as 20 MT was sold for as high as N5.5m on Tuesday, translating to an increase of 29.41 per cent since November 20, when it was sold for $4.25m.
Marketers have said the price of cooking gas had continued to increase in recent months as the depreciation of the naira against the dollar and increased global demand pushed up the cost of importing the product into the country amid inadequate local supply.
LPG, an advocacy organisation championing the use of LPG in the country, said in a new report that LPG sourcing in 2020 was dominated by imports, taking over 50 per cent of the market with local sources accounting for 46 per cent.
It said local supply was mainly by NLNG Bonny at 41 per cent (361,163 MT for NLNG and 515,586 MT for other sources), while the other five per cent was from Mobil BRT, Bonny.
It noted that there were new players, including Techno Oil and Rainoil with 8400MT and 8000MT capacity respectively in depot storage.
The report said, “The addition of depots helped the industry achieve the highest monthly LPG volumes yet, of 100,000MT in September 2020.