NALPGAM Explains High Cooking Gas Prices Amid Depot Cuts

The Nigeria Association of Liquefied Petroleum Gas Marketers (NALPGAM), led by executive secretary and CEO Bassey Essien, has addressed the ongoing high retail prices of cooking gas in Nigeria, despite significant reductions in depot prices. Essien explained that cooking gas is a logistics-intensive commodity, and the cost structure from supply points to consumers is complex.

Marketers incur various expenses, including haulage, freight, handling, storage, and regulatory fees, which contribute to price differences across locations. Additionally, marketers often purchase gas from other marketers at higher prices, further increasing their costs.

Essien highlighted that inventory timing affects retail pricing; for instance, a marketer who bought gas at N1,100 per kilogram cannot sell it below N1,000 without incurring losses. Currently, depot prices have decreased to around N20 million per truckload, with retail prices now ranging from N1,000 to N1,300 per kilogram.

NALPGAM is working with the government to eliminate unnecessary charges and encourages marketers to pass on cost reductions to consumers.