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Price of cooking gas expected to surge, NALPGAM warns

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Price of cooking gas expected to surge, NALPGAM warns

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has cautioned that the price of cooking gas may increase due to the rise in foreign exchange rates and international market activities.

In an interview with the News Agency of Nigeria (NAN) on Thursday, Mr. Olatunbosun Oladapo, the President of NALPGAM, highlighted the factors contributing to the price hike.

He mentioned that a gas terminal operator had officially notified the association about the changes in price, attributing the increase to a significant surge in the forex rate and its scarcity.

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Oladapo listed several reasons for the price review, including escalating international prices, high tax rates, vessel prices, forex scarcity, and naira devaluation.

He expressed concern about the impact on consumers, middlemen, and retailers, characterizing the current situation as a decline in business. Olatunbosun emphasized the need for government intervention to alleviate the suffering of the masses by providing palliatives and reducing taxes and levies.

Furthermore, he proposed that the government should tax profits instead of products since consumers are finding it increasingly difficult to afford gas.

Olatunbosun criticized the impact of local taxes, urging marketers to consider consumers’ situations and adjust prices accordingly when they have the opportunity to buy products locally.

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In recent news from the National Bureau of Statistics, it was reported that the average retail price for refilling a 5kg cylinder of cooking gas decreased by 6.71% month-on-month from May to June. However, on a year-on-year basis, it decreased by 3.56% compared to June 2022.

Kwara recorded the highest average price for refilling a 5kg cylinder at N4,750.00, followed by Niger with N4,691.16, and Zamfara with N4,683.33. Conversely, Ondo had the lowest price at N3,287.86, followed by Ekiti and Nasarawa with N3,288.46 and N3,364.62, respectively.

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