Experts Task FG On Massive Investment, As Consumers Bemoan LPG Price Hike
Some Oil and Gas experts have advised the Federal Government to invest massively in the sector or provide intervention funds for private investors to stop hike in price of Liquefied Petroleum Gas (LPG).
The experts also advised the Nigeria Liquefied Natural Gas (NLNG) company to allocate enough gas to meet local consumption demand, up to 1.2 metric tonnes, to eliminate impact of foreign exchange.
The experts made these known in separate interviews with newsmen in Abuja, last Thursday while reacting to the continuous increase in the price of LPG, otherwise known as cooking gas.
The Tide source reports that many LPG consumers and retailers had complained bitterly in view of LPG constant price increase and perceived reduction in quality which effect had been unbearable on households and businesses due to its general use.
An Oil and Gas Expert, Dr Olanrewaju Aladeitan, expressed surprise that 60 per cent of our LPG came from imports, whereas Nigeria is more of a gas producing nation than oil.
In view of this, Aladeitan tasked government to invest in the sector or, better still, the Central Bank of Nigeria (CBN) to provide some intervention funds for private investors to cushion the effect.
“Doing this, we would be preparing for the Energy Transition which is here anyway. It will also help in our decarbonisation campaign,” he said.
Also, speaking, an Economist, Dr Chijioke Ekechukwu, highlighted different reasons the price of LPG had been rising and unstable in the country.
According to him, LPG annual local consumption is about 1.2 million metric tonnes, but NLNG allocates only 350 metric tonnes for local consumption, while the rest is imported.
He said that the imported one is subjected to 7.5 per cent imposed Value Added Tax (VAT).
“The imported price portion is determined by the prevailing exchange rate which hovers between N410 to N570 per dollar.
“Many times due to Port congestions, these imported gas attract demurrage which adds to the cost,” he explained.
To find solutions to this price hike, he said government needed to address all the foregoing causes in order to bring down the price.
He further advised that NLNG should allocate enough to meet the demand of the local consumption, up to 1.2 metric tonnes.
“By doing so, the impact of foreign exchange (forex) and importation as well as associated costs will be eliminated,” Ekechukwu said.
An LPG retailer, Mr Promise Ajujumbu, said that 80 per cent of gas consumed locally was being imported.
He said that gas importers and marketers had complained about the imposed VAT and difficulty in accessing foreign exchange.
“NLG is supplying only 20 per cent of gas for domestic consumption, while 80 per cent was sourced abroad.
“And because of difficulty in sourcing forex from local market instead of getting directly from CBN at official price, at the end, it will affect the price and equally give room for adulterated gas.
“The hike started in April when one kilogramme (Kg) was being sold around N280 and N300 until the price triggered up to N708 per Kg presently.
“Currently 20 tonnes of LPG is sold at N9.5 million against N4 million being sold before the hike.
“Basically Nigeria is already blessed and can produce enough gas for domestic consumption.
“If there should be provision of storage facility and forex as well as removal of VAT the price will come down,” he said.
Another retailer, Mr John Abuchi, urged government to resolve the issues responsible for the high cost of gas.
Obi, Abure Masterminded Apapa’s Attack At Tribunal – Arabambi
The embattled National Chairman of the Labour Party, Lamidi Apapa has alleged that the presidential candidate of the party, Peter Obi and the party’s suspended National Chairman, Julius Abure, on Wednesday, sponsored thugs against him (Apapa) at the Court of Appeal in Abuja, venue of the Presidential Election Petition Court, PEPC.
Apapa was reportedly mobbed by some angry youths who were at the court to witness proceedings in the petition that Obi filed to challenge the outcome of the presidential election that held on February 25.
Speaking on the development, in an exclusive interview with The Tide source on Wednesday, the factional National Publicity Secretary of the party, Abayomi Arabambi, said he was surprised that this was how Obi, Abure and their supporters intended to come at them.
He said, “They attacked some police. They were fighting with press men. It was the security operatives that saved us. They came there to kill today (Wednesday) and we will definitely petition the police.”
When asked to provide evidence, Arabambi said, “We have the video now, the man that removed the cap of Apapa, we know him. We know them. We know all of them.
“We were together in the court when they started attacking us. Are they not Obidients, are they not shouting Obidients, shouting: Thief Thief on us!”
“It shows the character of who that man is. He can not even govern a local government,” he added.
The spokesperson of the Labour Party, has, however, insisted that they will petition the Inspector General of Police over the incident.
Buhari Returns To Abuja From UK Trip
After an additional week in the United Kingdom, where he had gone to attend the coronation of King Charles III, President Muhammadu Buhari has returned to Nigeria.
The President’s aircraft touched down at 4:45 pm yesterday, at the Nnamdi Azikiwe International Airport in Abuja from where he was flown to the Presidential Villa in a chopper.
President Buhari left Nigeria on May 3 for the UK to participate in the coronation ceremony of King Charles III and his Queen Consort, Camilla, of the United Kingdom.
He was initially billed to return to Abuja within the week but had to extend his stay for an additional week to enable him to honour an appointment with his dentist.
Femi Adesina, the Special Adviser to the President on Media and Publicity, announced Buhari’s decision to stay another week in London in a statement.
“President Muhammadu Buhari will be in London, United Kingdom, for an additional week, at the behest of his dentist, who has started attending to him.
“The specialist requires to see the President in another five days for a procedure already commenced.
“President Buhari had joined other world leaders to attend the coronation of King Charles lll on May 6, 2023,” the statement said.
Buhari is expected to hand over the reins of power to his successor and political ally, Bola Ahmed Tinubu on May 29th.
Already the Presidential Villa is taking a new shape as the maintenance officers are effecting necessary repairs of the seat of power.
Hyde Energy Set To Relaunch Luminor Lubricants
Hyde Energy Limited, a global petroleum-trading company with a downstream network in Nigeria, has revealed plans to relaunch Luminor, one of the company’s automotive lubricants.
The Chief Executive and founder of Hyde Energy, Olademeji Edwards, disclosed this recently at a media parley held in Lagos.
Hyde Energy operates across the value chain of the energy industry, and deals with the importation of petroleum products, including Premium Motor Spirit (PMS), Gasoil, Dual Purpose Kerosene (DPK), Jet Fuel, Liquified Petroleum Gas (LPG), automotive lubricants, and Naphtha.
Speaking with the press, Mr. Olademeji said in the next six months, Hyde Energy would be performing a relaunch of its Luminor brand and other products.
“The Hyde Luminor brand is a fantastic brand and has infiltrated the hearts of a few Nigerians.
“We launched that particular lubricant in 2017, and in our first year we sold five thousand litres in a quarter; today we are doing almost three thousand litres in a month, which is not a lot compared to other companies.
“But in the next six months, we are performing a relaunch of our products. We are going launching new labels, new bottles, and a new winning strategy coming into Lagos.
“We have not really been popular in Lagos; we have mostly been operating in the Southeast, Abuja, East and Calabar, which is where we get most of our volumes.
“But you will be hearing more and more of the Hyde Luminor brand going forward in weeks and months ahead, and we will enter into partnership with key people that would help us penetrate the market, and work with stockiest, so they can enjoy and know about us”, he said.
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