NALPGAM calls for domestic pricing of LPG

The National Association of Liquefied Petroleum Gas Marketers (NALPGAM) has called on the government to look into pricing the Liquefied Petroleum Gas (LPG) meant for domestic use on domestic price.

The association made this call through the National President, Mr. Basil Ogbuanu, in an exclusive interview with Daily Times in Lagos.

“The NLNG that is supplying it today is supplying under what we call domestic LPG scheme where a particular quantity is made available for domestic use. We are suggesting if it is possible for them to give us also what we call domestic pricing. So that, that one that has been earmarked for domestic use will also be priced with Naira. Even though we are paying in Naira but it is in International Market price. This is not a dollarized economy and this is Nigerian product,” he further stated.

“We are suggesting that either NLNG or the government should intervene because this is the easiest way to get out of this price issue otherwise when there is winter in Europe the price increases in Europe and you and I who are stakeholders of this products will be paying for what is happening in Europe. In my own opinion, it makes no sense to Nigerian people. The government needs to come in and look at it since it has structured a way that there is a quantity made available for domestic use let there be also a domestic price,” he said.

Mr. Ogbuanu further called for the rehabilitation of the two moribund companies building cylinders in Nigeria in order to assist Nigerians at the entering point of gas usage.

“Entering point means for someone to start using gas, he/she needs to buy cylinder, cooker, regulator, and so on, and these products are not produced in Nigeria. When entering cost is taken away, more people will start using gas in Nigeria. So, the government should look at the cost of entering so that Nigerians can be encouraged like what happened in Indonesia, where the government asked the citizenry to bring their stoves and take cookers.”

He pointed out that there were two major cylinder producing company in Nigeria, but today they are moribund. According to him, if the government can intervene and revive these industries to start producing cylinder in Nigeria, this will save the foreign exchange spent on importing the items. “If we are talking about 50 million Nigerians using gas, we will talk about bringing in more 40 million cylinders into the country. But if we are manufacturing in Nigeria, it will save the nation hard earned foreign exchange and also provide employment for the teeming youth unemployed, ” he argued.

But in a short run, he said before we start producing in Nigeria, the items should be duty-free for about five years to develop and deepen this industry. “We have made the presentation to the government before now. When more people go into the usage of gas government will earn more revenue.”