'It's not true' - NLNG refutes alleged hike in price of cooking gas, says marketers got 380MT

The Nigeria Liquified Natural Gas Limited (NLNG) has debunked media reports stating that a price hike by the firm was responsible for the rising cost of cooking gas in Nigeria.

The company revealed in a statement issued on Wednesday, November 8, 2023, by its General Manager, External Relations, Andy Odeh, that the report is speculative and shows a misunderstanding of Nigeria's complex market dynamics.

Market forces responsible for price increase According to the statement, the report insinuated that a price hike by NLNG is responsible for the rising price of cooking gas in the country and that there is a looming scarcity.

"NLNG dismisses these media reports as speculative and indicative of a fundamental misunderstanding of Nigeria's intricate market dynamics," NLNG said.

ThisDay reports that the company stated that the domestic market for cooking gas was subject to market dynamics and various external forces, such as exchange rates and escalating price benchmarks due to crude oil prices.

Other factors, the company stated, are the Panama Canal drought-induced vessel scarcity affecting transport costs, mainly imported cooking gas.

NLNG disclosed that it has supplied over 380,000 metric tonnes of cooking gas to marketers using LPG vessels.

NLNG delivers 380,000MT tonnes to marketers

It stated that it has contributed to the domestic market, promoting steady growth of Nigeria's LPG market volume from less than 50,000 metric tonnes of imported LPG in 2007 to over 1.3 million metric tons of domestic and imported cooking gas.

According to the firm, it delivers over 450,000MT tonnes per annum of Butane, the main ingredient in cooking.

It has also embarked on a domestic propane supply to grow the local market.

NLNG said: "Since the beginning of the year, NLNG has delivered over 380,000 metric tonnes of LPG using the Company's dedicated LPG vessel."

Legit.ng earlier reported that Nigeria currently faces cooking gas scarcity affecting several states, including Lagos, Kano, Kaduna, Delta, and others.

The commodity's price has been increasing recently, with marketers selling a kilogramme of the product at between N1,300 and N1,400 from N900 it sold in June and July.

Nigeria is one of the fastest-growing LPG markets in the world.