A MUST READ: Discover Why the Cost of Cooking Gas in Nigeria Reduced
Former President, of Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr. Nuhu Yakubu has attributed the decrease in the retail price of cooking gas in the country to the fall in price of the product at the international market.
Yakubu said this in an interview on Thursday in Lagos, against the backdrop of a reduction in the price of Liquefied Petroleum Gas (LPG) in Nigeria.
According to the U.S. Energy Information Administration, the current price of natural gas dropped by 76.1 percent to 2.10 per one million dollars British Thermal Units (BTU) on May 31 from 8.78 per one million dollars BTU.
Yakubu said that the price of LPG dropped because the international reference price in USD had dropped, amidst relatively stable Naira exchange rate.
“So, the ripple effect is being felt locally in retail pump price reduction.
“Current price of LPG depends on location, as you know it’s operating in a deregulated market.
“However price is averaging at N730 per kilogram or N417 per litre,” he said.
Yakubu, also Group Chief Executive Officer, Banner Gas Ltd., said that government had no role in LPG pricing, except to levy taxes on the product.
He said:-
“So, government can only help with reducing taxes.
“Government can also help address the issues challenging gas supply as feedstock to major LPG producers like NLNG.
A NAN correspondent, who monitored cooking gas prices at the retail market, gathered that the cost of cooking gas had reduced by 15 percent.
Between April and May, the price of refilling a 12.5kg cylinder of Liquefied Petroleum Gas (cooking gas) has reduced between 12 per cent and 10 per cent on the back of lower crude oil prices and a decline in international gas prices.
NAN survey in Lagos indicated that the price of cooking gas is trending downwards to N8,700 currently from N10,500 in April and May.
