Gas Price Hike Blamed on Cabals as Marketers Address Senate

The Nigerian Association of Liquefied Petroleum Gas Marketers has pointed fingers at terminal operators for the persistent increase in gas prices, alleging exploitation and limiting access to Nigerians. This accusation was made during a meeting with the Senate on Monday, led by the association’s president, Oladapo Olatunbosun.

Olatunbosun emphasized that the Nigeria Natural Liquefied Gas has been consistent with its supply, but the presence of so-called “cabals” has disrupted the availability of gas to the general population. Olatunbosun even identified some of these cabals as those who purchase the gas at a lower cost from the source and then sell it at significantly higher prices to consumers.

“The cabals are making it difficult for the average Nigerian to have access to gas. As of today, gas is sold by these terminal owners for N16.8 million for 20 metric tonnes, whereas NNLG sells to them for a little bit less than N9 million,” he stated.

He also highlighted the plight of ordinary Nigerians, saying, “When people go to fill their gas today, the least they get is N1,200 per kilogramme – imagine the pains of Nigerians. In the Nigeria of today, can a student or menial worker afford to cook a cup of beans with a N1,200 cost of gas?”

The marketers argue that there is no legitimate reason for gas to be sold at such high prices in Nigeria, especially given the country’s substantial gas production capacity. Olatunbosun pointed out that Nigeria is the second-largest gas producer in Africa after Algeria, with significant domestic production, but the actions of these cabals hinder the people from benefiting from this wealth.

One of the concerns raised by the marketers is the false claim of forex being a reason for the gas price increase when all transactions are conducted in Naira. They assert that these cabals have taken advantage of this situation to sell gas at exorbitant prices and mislead the government.

The association issued a warning, stating that if the issue isn’t resolved, 12.5kg of gas could be sold for N25,000 by December. This would make gas a luxury product accessible only to the wealthy.

Olatunbosun further expressed concern about low gas utilization levels in Nigeria due to poverty and other factors, which, in turn, leads to deforestation as people turn to alternative sources for cooking fuel.

The President of the association emphasized the need for reasonable profit-making that doesn’t harm the interests of the people and helps to expand gas usage. He noted that these cabals aim to stifle industry growth and monopolize it for their gain.

In response, the Senate chairman on gas, Jarigbe Jarigbe, assured the marketers that the Senate would address the issue, stressing that it’s a critical national concern. He emphasized the importance of allowing Nigerians to have access to affordable gas and pledged Senate support to resolve the situation.

This encounter between gas marketers and the Senate sheds light on the challenges faced by Nigerians in accessing affordable gas, and the promise of legislative action to address this issue.