- The Nigeria Liquified Natural Gas Limited (NLNG) has denied media reports that it hiked cooking gas price
- Some media reports had claimed price hike by the NLNG was responsible for the surge in the cost of the commodity in Nigeria
- But the company clarified market complexities and exchange rate mix were responsible for the price surge
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The Nigeria Liquified Natural Gas Limited (NLNG) has debunked media report blaming it for the rising cost of cooking gas in Nigeria.
In a statement issued on Wednesday, November 8, 2023, by Andy Odeh, its general manager for external relations, the company said report was speculative and showed a misunderstanding of Nigeria's complex market dynamics.
Market forces responsible for price increase
In the statement, the NLNG faulted claim by the report that Nigerians should expect cooking gas scarcity.
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"NLNG dismisses these media reports as speculative and indicative of a fundamental misunderstanding of Nigeria's intricate market dynamics," NLNG said.
ThisDay reports quoted the company as saying the domestic market for cooking gas was subject to market dynamics and various external forces, such as exchange rates and escalating price benchmarks due to crude oil prices.
Other factors, the company stated, are the Panama Canal drought-induced vessel scarcity affecting transport costs, mainly imported cooking gas.
NLNG disclosed that it has supplied over 380,000 metric tonnes of cooking gas to marketers using LPG vessels.
NLNG delivers 380,000MT tonnes to marketers
The company further said it has contributed to the domestic market by promoting steady growth of Nigeria's LPG market volume from less than 50,000 metric tonnes of imported LPG in 2007 to over 1.3 million metric tons of domestic and imported cooking gas.
NLNG also said it delivers over 450,000MT tonnes per annum of Butane, the main ingredient in cooking. The firm added that it has embarked on a domestic propane supply to grow the local market.
"Since the beginning of the year, NLNG has delivered over 380,000 metric tonnes of LPG using the Company's dedicated LPG vessel."
The commodity's price has been increasing recently, with marketers selling a kilogramme of the product at between N1,300 and N1,400 from N900 it sold in June and July.
Nigeria is one of the fastest-growing LPG markets in the world.
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Legit.ng also reported that marketers of cooking gas under the Nigerian Association of Liquified Petroleum Gas Marketers (NALPGAM) accused the Liquified Petroleum Gas (LPG) terminal operators of causing the country's high cooking gas cost.
Oladapo Olatubosun, the association's president, disclosed this when they met the Senate Committee on Gas in the company of the group members on Monday, October 23, 2023.
The commodity's price recently increased to N1,200 per kilogram, with many Nigerians lamenting its high cost amid surging inflation and high living standards.