Gas retailers not responsible for price hike, says LPGAR

The Liquefied Petroleum Gas Retailers Association of Nigeria (LPGAR) has said retailers should not beryllium blamed for the existent hike and scarcity of Liquefied Petroleum Gas (LPG), besides known arsenic cooking gas.

Mr Ayobami Olarinoye, Chairman of LPGAR nether the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), said this successful a connection connected Saturday successful Lagos.

He said the rising outgo and constricted availability of LPG stem from proviso challenges, not terms manipulation by retailers.

“The caller scarcity and spike successful LPG prices person brought untold hardship to millions of Nigerian households and businesses. We recognize this symptom and consciousness compelled to clarify the relation of retailers successful this crisis,” Olarinoye said.

The president was reacting to comments by the president of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), who reportedly blamed retailers for the terms surge.

Describing the allegation arsenic “unfair and misleading”, Olarinoye explained that retailers neither run astatine the depot level nor enactment arsenic importers oregon superior off-takers.

“Our operations are constricted to buying state from works owners and selling to end-users. Many of america question to neighbouring states to acquisition LPG astatine precocious costs owed to proviso shortages, which people affects retail prices,” helium said.

According to him, though Dangote Refinery has not accrued its state price, proviso irregularities person created a demand-supply imbalance that continues to thrust up prices.

“Some retailers person had to unopen their outlets for days oregon weeks due to the fact that they couldn’t entree supply, resulting successful immense concern losses and operational strain,” helium said.

Olarinoye stressed that the terms hike is driven purely by marketplace forces.

“If works owners summation prices, we person nary prime but to set ours. We cannot beryllium expected to merchantability astatine a loss,” helium said.

He noted that portion Dangote Refinery is simply a large marketplace player, it presently lacks the capableness to conscionable Nigeria’s full LPG demand, which has risen from little than 1 cardinal metric tonnes to implicit 2.3 cardinal metric tonnes annually.

He said off-takers, who should complement Dangote’s proviso by importing oregon sourcing from the Nigeria Liquefied Natural Gas (NLNG), person slowed operations owed to uncompetitive pricing.

“Dangote sells a 20-metric-tonne truckload of LPG astatine astir N15.8 to N16 million, portion off-takers connection the aforesaid quantity astatine N18.5 to N18.6 million.

Naturally, buyers opt for the cheaper option, reducing importation and worsening scarcity,” helium said.

He added that the caller PENGASSAN onslaught lone aggravated an already fragile proviso chain.

“Even aft the onslaught was called off, proviso has not stabilised. Some works owners person paid for state from Dangote but are yet to load owed to agelong queues and constricted availability,” helium explained.

Olarinoye urged the authorities to span the terms spread betwixt Dangote and off-takers to guarantee accordant proviso and marketplace stability.

“We don’t cognize the nonstop landing costs from NLNG, but if off-takers were making capable profit, they would terms competitively. As it stands, they’re reluctant to restock,” helium said.

He stressed that the ongoing situation is rooted successful systemic proviso issues, not retailer manipulation, and called for collaboration among stakeholders.

“Blaming retailers volition not lick anything. We impulse the authorities and manufacture players to enactment unneurotic to boost home production, promote competitory pricing, and stabilise proviso nationwide,” helium said.

Olarinoye assured customers that the national remains committed to restoring normalcy.

“We stock the public’s vexation and are moving toward solutions. Until then, proviso and request volition proceed to thrust marketplace prices,” helium noted.

The station Gas retailers not liable for terms hike, says LPGAR appeared archetypal connected Vanguard News.