The Nigerian LNG Limited has revealed why the price of cooking gas is skyrocketing in recent times in the nation, News About Nigeria reports.
According to the Company, some of the factors causing the increase in the price of gas include; “exchange rates, escalating price benchmarks mirroring crude oil prices, and the Panama Canal drought-induced vessel scarcity impacting transport costs especially for imported LPG.”
These factors according to the company, have significantly affected the prices of energy and is undoubtedly the reason for recent price hikes witnessed in the gas domestic market.
Meanwhile, the current average price of 1kg cooking gas in Nigeria is N1,200 as against the N696 it was sold in June this year.
According to NLNG Limited, the company’s target is reduce importation while also meeting the increasing demand for the product in the country.
The company also noted that despite feed gas challenges, they have continued to supply LPG to the domestic market, accounting for approximately 40% of the total market volume.
The firm further revealed that since the beginning of the year, it has delivered over 380,000 metric tonnes of LPG domestically, using the company’s dedicated LPG vessel.
It also noted that it remains committed to ensuring the reliable supply of LPG products to the domestic market at prices that are reflective of the market.
It added that it is working together with relevant stakeholders in the industry in order to achieve this objective and will remain focused on achieving its mission which is to to harness Nigeria’s vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for export.
