The continuous rise in the price of Liquefied Petroleum Gas (LPG), popularly called cooking gas in Nigeria, may continue for a while if challenges relating to foreign exchange, infrastructure, and planning are not addressed now.
More Nigerians may be forced to revert to alternative unclean energy sources like firewood, and other dirty fuels.
This was the position of the Executive Secretary, National Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, and the National Chairman, Liquefied Petroleum Gas Retailers, a branch of Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Chika Umudu, who spoke to newsmen in Lagos.
Essien said since the LPG market is deregulated, it means its price is determined by the prevailing exchange rate of the naira to the United States dollar.
“Though we produce LPG locally, it is very unfortunate that the price of both the locally produced and the imported product, is determined by the prevailing exchange rate.
The price, really, is a function of global pricing templates.
“Also, for the fact that our refineries are not working well, Nigeria cannot help the situation.
Internally, we have to depend on the LPG provided by Nigeria LNG Limited (NLNG), which is priced internationally.
“Though the issues of global oil price and weather are relevant factors, the weak naira exchange rate to the dollar, remains a major concern.”