Despite improved foreign exchange supplies, Nigerian importers say they face acute FX for importing and supplying liquified natural gas (LPG), also known as cooking gas.
Poor access to Forex and the scarcity of vessels to carry LPG to the country hinder the move to meet Nigeria’s domestic gas supply of one million tonnes valued at N1.2 trillion.
Findings show that the development could lead to an increase in cooking gas prices in the coming months despite the removal of import duties by the Nigerian government.
Gas prices rose from N900 per kilogramme in June to N1,200 in July 2024 as consumption is pegged at 1.5 million tonnes, while domestic supply is estimated at 500,000.
According to reports, data from the Nigerian National Petroleum Company Limited (NNPC) show that total gas production between January and June this year stood at 851,277 tonnes for domestic and export markets.
In June 2024, total LPG output stood at 147,634, May recorded 142.415, April 133,923, March 136,686, February 134.067, and January 156,552 tonnes.
TimesNow.com.ng previously reported that the National Bureau of Statistics put total LPG imports at N194.68 billion in the first quarter of 2024.
However, only 20 LPG vessels serviced Nigeria’s domestic gas market from Europe as the country relies on NLNG’s vessels, while foreign firms own others.
Additionally, only 12 LPG depots are in Lagos with 69,968 tonnes capacity, while only NAVGAS and New Oil Jetty terminals in Lagos are the only ones getting regular supplies.
With gas prices at about $280 per tonne, LPG imports into Nigeria are between $405 per tonne when added to $125 landing costs.
The Nigerian Ports Authority data show that only Claude arrived at the Delta port in Warri with 6,000 tonnes of LPG. In comparison, two vessels berthed at the Lagos jetties, ready to discharge 22,000 tonnes from Fortune, loaded with 55,000 tonnes, and Nisyros, with 7,000 tonnes.
TimesNow.com.ng earlier reported that cooking gas prices had risen again after moderating for most of July due to supply availability.
Findings by TimesNow.com.ng showed that the price of 12.5kg of cooking gas refill rose to N14,500 from the N13,000 it sold a few weeks ago.
The price of 1kg of cooking gas rose to N1,200 from N900, and the price of 6kg of cooking increased to N7,200 from N5,100.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
