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Tag: Cooking Gas

  • Why you should avoid using expired gas cylinders

    Why you should avoid using expired gas cylinders

    Mr Ibrahim Mohammed, Chairman, Association of Liquefied Petroleum (LPG) Plant owners in Adamawa has advised customers to avoid using expired gas cylinders, describing them as “time bombs“.

    Mohammed, who gave the advice on Thursday in Yola, said non-usage of expired gas cylinders would save lives and property.

    He said that each gas cylinder has an expiring date, hence the need to replace them after 15 years to avoid explosion.

    “This cylinder that you are using have expiring date after 15 years, so it is important for you not buy cylinders that has no date.

    “You should always be cautious by complying with safety guidelines, as compliance is key”, he advised.

    According to him, it is advisable for people to paste the guidelines in their kitchens to serve as a remainder at all times in the event of any challenge.

    Mohammed also advised customers to call or go to back to gas plants in case of leaks and other operational challenges.

    He appealed to state governments to upgrade their fire fighting facilities by providing then with more modern equipment.

    He said that government also needed to enlighten the public on safety guidelines.

    He said there were about 14 gas plants in the state, made up of four in Mubi and 10 others in the Jimeta-Yola axis.

  • Price of cooking gas continued upward trend in December 2021 – NBS

    Price of cooking gas continued upward trend in December 2021 – NBS

    Despite optimism by marketers, the price of five kilograms (5kg) of Liquefied Petroleum Gas (LPG) known as cooking gas, continued its upward trend in December 2021 by 8.53 per cent at N3,594.81 from ₦3,312.42 in November 2021.

    The National Bureau of Statistics (NBS) said this on Thursday, in its LPG Price Watch for December 2021, obtained from its website.
    The report said that the price increased from ₦1,949.75 in December 2020, showing an increase of 84.37 per cent, on year-on-year basis.

    It said that the highest average price for refilling a-5kg cylinder was recorded in Benue ₦4,083.33, Cross River ₦3,975.00 and Borno ₦3,966.67.

    However, the lowest average prices were recorded in Adamawa at ₦2,398.40, Yobe ₦2,543.14 and Bauchi ₦2,586.43.

    “Similarly the average price for refilling a-12.5kg cylinder of cooking gas increased year-on-year by 76.49 per cent to ₦7,332.04 in December 2021 from ₦4,154.28 in December 2020.

    “The month-on-month analysis showed that the average price increased by 0.33 per cent from ₦7,308.06 in Nov. 2021,” it said.

    Giving a breakdown of the highest average price by states, the NBS said that 12.5kg cylinder was sold at ₦8,491.67 in Osun, ₦8,303.33 in Oyo and ₦8,058.00 in Abuja.

    For the lowest average price, Borno residents bought at ₦5,852.13, Bayelsa ₦6,678.57 and Nasarawa ₦6,679.57.

    For National Household Kerosene, consumers paid an average price of ₦467.97 per liter in December 2021, an increase of 6.10 per cent on a month-on-month basis from ₦441.06 in November 2021.

    On a year-on-year basis, the average price increased by 32.65 per cent from ₦353.79 in December 2020 to ₦467.97 in December 2021.

    The NBS said that the top three states with the highest average price per liter in the month under review were Ebonyi with ₦687.50, Abia ₦585.00 and Ekiti ₦552.08.

    Also, the states with the lowest average prices per liter were Bayelsa with ₦300.00, Kwara ₦355.60 and Nasarawa ₦384.85.

    “On the other hand, the average price per gallon (3.79 litres) of kerosene paid by consumers increased by 2.51 per cent on a month-on-month basis from ₦1,544.01 in November to ₦1,582.73 in December.

    “The year-on-year analysis shows that the average price per gallon (3.79 litres) of kerosene increased by 34.63 per cent from ₦1,175.59 in December 2020 to ₦1,582.73 in December 2021,” it said.

    The highest prices were recorded in Cross River with ₦2,035.94, Lagos ₦2,015.79 and Jigawa ₦2,004.44 while the lowest prices were recorded in Adamawa with ₦1006.25, Yobe ₦1,164.29 and Borno, ₦1,181.25.

    The NBS said that in arriving at the report about 700 of its staff did field work in all states of the federation supported by supervisors who were monitored by internal and external observers.

    It said its audit team subsequently conducted randomly selected verification of the prices recorded.

    Meanwhile, entering into the new year, marketers have said the price of the commodity has started dropping.

  • Price of cooking gas has started dropping – Marketers

    Price of cooking gas has started dropping – Marketers

    The price of Liquefied Petroleum Gas (LPG) popularly known as cooking gas has started dropping, marketers have confirmed.

    TheNewsGuru.com (TNG) reports Mr Bassey Essien, the Executive Secretary, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) and Mr Michael Umudu, National Chairman, Liquefied Petroleum Gas Retailers (LPGAR) confirmed this on Monday.

    According to Essien, the announcement that the government was reintroducing value added tax (VAT) on imported LPG created panic in the market which led to the hike experienced in the price of cooking gas in 2021.

    He said the federal government was yet to implement the payment of VAT on imported LPG, and as a result the price of the product across the country has started dropping.

    Recall that the government had in 2019 gazetted the removal of VAT on LPG to increase its domestic utilisation. However, in July 2021, the marketers were notified about the reintroduction of VAT on the product as the government moved to shore up its revenue sources.

    Essien urged the government to urgently clarify its position on the issue, saying: “The announcement that the government was reintroducing VAT on imported LPG created panic in the market which led to the hike we experienced in the prices of cooking gas in 2021.

    “Some marketers stopped importation, and don’t forget that about 60 per cent of LPG consumed in Nigeria is imported. The NLNG only supplies about 450,000MT and our LPG consumption is over one million metric tonne, so imposing VAT on imported LPG affected the market.

    “However, government is yet to begin collection of VAT payment in spite the announcement which has encouraged more marketers to restart importation.’’

    He said the impact was currently being felt as the prices of cooking gas had reduced from about N10,000 and N10,500 for a 12.5kg gas cylinder to about N7,400 and N9000, across the country.

    According to Essien, supply has increased and as it continues, the prices will continue to decline but it is still a far cry from where we are coming from.

    “In January 2021, a 20 metric tonne truck was about N4 million but it is currently about N9.7 million.

    “We have to look at all the factors that drove the prices up including LPG demand in the international market and find a way to domesticate LPG supply to ensure price stability.’’

    Meanwhile, Umudu has said the decline in the prices of cooking gas was a welcome development.

    Umudu said: “we as retailers suffered so much because many of our customers switched to charcoal and firewood because they could no longer afford to buy gas.

    “Now, supply is increasing and we are hoping that if it is sustained, there will be further reduction in the price of cooking gas.

    “We learnt that government has not implemented the VAT policy but the pressure that the pronouncement brought to the industry led to the hike in the price of LPG.

    “We want the government to come out openly to say that they have removed VAT on imported LPG so that there will be stability.’’

    He emphasised the need for the government to encourage more Nigerians to embrace gas because of the attendant health benefits to the nation.

    “Government has announced many policies aimed at deepening gas utilisation such as the Decade of Gas Development initiative and the National Gas Expansion Programme.

    “However, these programmes need to be workable and not just on paper. There need to be infrastructure on ground to support their implementation,’’ Umudu added.

  • Reps ask FG to urgently wade into hike in price of cooking gas

    Reps ask FG to urgently wade into hike in price of cooking gas

    By Emman Ovuakporie

    The House of Representatives has urged the Federal Government to immediately Wade into hike in cooking gas to alleviate problems of consumers.

    The House also advised the FG to develop effective mechanisms and explore different mitigation options to cushion the effect of persistent rising in the price of cooking gas.

    At plenary on Thursday the House further mandated the Committee on Gas Resources to liaise with the Minister of State for Petroleum Resources to proffer a lasting solution to the problem.

    The resolutions followed a motion entitled: Urgent Need to Check the Persistent Increase in the Price of Liquefied Natural Gas (Cooking Gas) sponsored by Hon. Afolabi Rasheed during plenary.

    The House noted that Nigerians have been facing various challenges including insecurity, extreme poverty, high cost of food and essential consumables and, most recently, a persistent rise in the price of cooking gas.

    It also noted that cooking gas is a basic need for many Nigerians, especially those living in the urban and semi urban areas who use it daily for preparation of meals.

    The House was concerned that Nigeria, which is ranked 9th among the countries in the world with the highest reservoir of gas resources with about 207 trillion standard cubits’ feet as of 2019, would subject its citizens to such hardship arising from high cost of cooking gas.

    The House was also concerned that a kilogramme of gas which was initially sold for N300 is now sold within the range of N700 to N850, which has further plunged Nigerians into untold hardship as such basic necessity is increasingly becoming unaffordable.

    The House said it was aware that the hike in the price of the product was blamed by marketers on the recently introduced import charges and Value Added Tax (VAT) by the Federal Government, whereas in other countries, the government actively protects and cushions the impact of rising gas price on vulnerable citizens.

    It was concerned that a prolonged increase in the prices of essential items especially during the Yuletide season could have grave social consequences as it could worsen the economic hardship, thus forcing people into resorting to crime and other vices in order to survive.

    The House also urged the Department of Petroleum Resources to immediately commence a raid on illegal liquefied petroleum gas stations across the country to safeguard lives and properties of the people and mandated its Committee on Gas to ensure compliance.

    These followed the adoption of a motion on the Need to Check Illegal Liquefied Petroleum Gas (LPG) Stations Across the Country by Hon. Taiwo Oluga.

    The House noted that Department is responsible for ensuring that health, safety and environmental regulations in the oil industry conform to international best practices.

    The House was concerned that there is an avalanche of illegal marketers and gas outlets of Liquefied Petroleum Gas (LPG) otherwise known as cooking gas on the streets in the Federal Capital Territory and other states of the Federation, which is in contravention of international health and safety standards.

    It was also concerned that the prevalence of illegal marketers of Liquefied Petroleum Gas (cooking gas) on the streets is a critical threat to lives and properties of the citizenry.

  • FG can’t regulate rising cooking gas price- Sylva

    FG can’t regulate rising cooking gas price- Sylva

    The Federal Government has said it has no direct control over the rising prices of Liquefied Petroleum Gas, commonly called cooking gas, and cannot regulate it at will.

    It, however, said that it was making efforts to reduce the cost of the commodity and make it reasonably priced for Nigerians ahead of the Yuletide.

    The Minister of State for Petroleum Resources, Timipre Sylva, revealed this to State House correspondents on Tuesday after a meeting with the President, Major General Muhammadu Buhari (retd.).

    At the meeting, Sylva formally presented the chief executives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission, Farouk Ahmed and Gbenga Komolafe, respectively.

    Speaking on the reasons for LPG price hike, the minister said, “Cooking gas is not subsidised. It is already a deregulated commodity. So, the price of cooking gas is not determined by the government or by everybody in the industry. Gas prices are determined internationally.

    “And you all are aware that in Europe today, gas prices have gone up. There was even crisis in Europe relating to gas prices. The pricing of gas internationally now affects also the price of gas in the country.

    “Apart from that, there are some issues around VAT charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it with the local producers of gas.”

    Sylva also said the President had directed him and his team to go and examine the oil spillage in Nembe, Bayelsa State.

    Speaking on what was behind the re-emergence of queues in filling stations across the country, Ahmed said some of depot owners were selling petrol above the official ex-depot price of N148/litre, as they sold the product for as high as N157/litre.

    “And the reason they adduced is that they are paying for their logistics such as shipping in dollars, they are also paying for NPA port charges and NIMASA charges in dollars,” he said.

    The NMDPRA boss said the government had met with operators in the downstream sector on the matter, adding that efforts were on to settle the concerns.

     

  • Cooking gas marketers deny distorting LPG market

    Cooking gas marketers deny distorting LPG market

    The Major Oil Marketers Association of Nigeria (MOMAN) says its members are not responsible for activities distorting the Liquefied Petroleum Gas ( LPG) market and attendant increase in the price of cooking gas across the country.

    Mr Clement Isong, Chief Executive Officer, MOMAN, made this known in a statement issued on Tuesday in Lagos.

    Isong said it was untrue that some marketers who are MOMAN members had formed a cartel which engaged in rejecting LPG supply from the Nigeria LNG Limited in their depots.

    He said: “MOMAN wishes to state categorically that we are not a cartel, nor do we engage in manipulating prices of any petroleum product.

    “MOMAN strictly adheres to local and international regulations, laws, and best practices to ensure that it is not complicit nor create an impression that it engages in anti-competitive practices such as price fixing and price gouging.”

    According to him, in the the case of LPG, the market is dominated by local independent marketers.

    Isong said the collective market share of MOMAN members either in terms of LPG storage or volume throughput was less than five per cent of the Nigerian market.

    He said that it was therefore untrue to suggest that MOMAN membership could in any way influence the supply or price of the product.

    “Finally, storage facilities for white products have different specifications and safety requirements different from storage facilities and assets for LPG and cannot be interchanged.

    “It is therefore wrong to suggest operationally that a marketer would prefer one to the other.

    ” A lot of investment in LPG infrastructure still needs to be made, hence government’s policy on the gas infrastructure fund,” Isong said.

    He commiserated with the Nigerian consumers struggling with the high costs of LPG caused by global supply challenges, high international prices, limited availability of foreign exchange and high exchange rates.

    Isong said MOMAN would continue to support government policies that encourage investments in the supply chain which will eventually optimise logistics costs and reduce prices.

  • Why cost of cooking gas is skyrocketing

    Why cost of cooking gas is skyrocketing

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has explained that the reintroduction of value added tax (VAT) on Liquefied Petroleum Gas (LPG), also known as cooking gas, is the reason why the cost of the commodity is skyrocketing.

    TheNewsGuru.com (TNG) reports Mr Bassey Essien, Executive Secretary, NALPGAM, who made this known in Lagos State, said the rising trend in the cost of cooking gas will continue if the Federal Inland Revenue Service (FIRS) and the Federal Ministry of Finance do not stop the VAT policy.

    Recall that the federal government had in 2019 gazetted the removal of VAT on Liquefied Petroleum Gas (LPG), also known as cooking gas, as a product to increase its domestic utilisation.

    Essien, appealing to the Federal Government to reconsider the imposition of Value Added Tax on imported LPG in the country, said the reintroduction of the policy would further increase the prices of cooking gas across the country.

    “It is unfortunate that the Federal Inland Revenue Service and the Federal Ministry of Finance have gone to resuscitate a product that has been exempted and gazetted from VAT.

    “This was gazetted in 2019 and has encouraged domestic gas utilisation.

    “Nigerians are already complaining about the prices of cooking gas across the country and this would further worsen the situation,’’ he said.

    Essien noted that while the government was desirous of expanding its revenue base, it should also consider the impact the reintroduction of VAT on importation of LPG would have in the country.

    “The government has declared the Year 2021 to Year 2030 as the Decade of Gas in Nigeria with the goal of deepening gas utilisation.

    “However, this goal will be defeated if cooking gas goes out of the reach of ordinary Nigerians due to the current increment in prices of the commodity.

    “The price of 12.5kg cylinder of cooking gas is between N6,000 to N6,500 across the country. It was being sold for about N4,000 averagely a few months back,’’ Essien said.

    He said more than one million metric tonnes of gas were consumed by Nigerians in 2020, with about 60 per cent of the product imported by marketers.

    According to him, “we import to augment the 350,000MT allocated to the domestic market by the Nigerian LNG Company Limited.

    “So putting VAT on it simply means that Nigerians will pay more and if we go on this route, the price of 12.5kg might hit N10,000 in some parts of the country by December.’’

    He further noted that some users of cooking gas were gradually reverting to the use of kerosene and firewood with the attendant health implications.

    However, Mr Sarki Auwalu, Director, Department of Petroleum Resources (DPR), said the government had to re-impose VAT on imported LPG to attract investments to local gas production.

    “For me personally, I wouldn’t like us to be importing LPG. This is a country that has over 600TCF of gas. We have proven reserves of 206TCF.

    “If you allow LPG to be imported without any restriction, it means you are not giving opportunity for upstream investors that will drill and get this gas.

    “Nigeria gas is sweet and rich. Sweet means that there is no sulphur. Rich means that it is rich in liquid. Anywhere you see gas in Nigeria, you can extract condensates out of it which is another input to the industry.

    “You can extract propane, then you extract the LPG butane. So it is this LPG butane that they are bringing in because it is easier to go and buy and sell it here, especially with no payment of VAT.”

    According to him, the removal of 7.5 per cent VAT on LPG importation is a discouragement for potential investors in the upstream sector which transcends to double losses for the government.

    “Government is losing through VAT and losing investors which are double jeopardy. So for us, it is a policy to encourage the inflow of investment in the gas sector,’’ he said.

    Auwalu added that initiatives such as the Nigerian Gas Transportation Network Code and the Nigerian Gas Flare Commercialisation Programme were geared towards attracting investments to the industry.

  • Senate urges DPR to enforce ban on illegal cooking gas retailers

    Senate urges DPR to enforce ban on illegal cooking gas retailers

    The Senate has urged the Department of Petroleum Resources (DPR) to clamp down on illegal roadside retailers of Liquefied Petroleum Gas (LPG).

    This, the Senate said was to enhance safety in the country.

    The resolution was sequel to a motion moved by Sen. Ibikunle Amosun (APC-Ogun) during plenary on Tuesday.

    The motion was “On the need to curb the rising cases of gas-related fire incidences, explosions and deaths in Ogun”.

    The upper chamber also urged DPR to step up the clamp down on illegal roadside retailers of LPG who operate without a valid licence or who operate within residential areas.

    The senate equally mandated its Committees on Gas, and Industries to investigate the cause(s) of the recent cases of Gas explosions in Ogun, other states and the FCT.

    This, it said was in order to find permanent and sustainable solutions that would save the lives of the people, and report back to the Senate.

    Moving the motion, Amosun said that natural gas found in abundance in the country had continued to gain acceptance among most homes in Nigeria as it was used for cooking, welding.

    He said that this essential commodity if not well managed and regulated, could be a curse rather than a blessing because of the loss of lives and destruction of properties that were usually associated with it whenever anything went wrong.

    The lawmaker called on regulatory agencies in the LPG to live up to their responsibilities to enforce standards, clamp down on influx of sub-standard cylinders and retailers who dispense adulterated gas.

    The resolutions were all adopted after a voiced vote by the Senate President, Ahmad Lawan.

  • Why price of cooking gas is on the increase in Nigeria

    Why price of cooking gas is on the increase in Nigeria

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has given reasons why the price of Liquefied Petroleum Gas (LPG), also known as cooking gas, is on the increase in the country.

    Mr Bassey Essien, Executive Secretary, NALPGAM, who made this known on Tuesday in Lagos State, decried the continuous increment in the price of the commodity in the past few months, stressing that the Federal Government alone cannot halt the hike in the price of the commodity across the country.

    Essien, noting that there was need to put in place a policy that would encourage full domestication of LPG, said: “The major issue we have with gas price is that majority of what we are consuming is imported.

    “Over one million metric tonnes of gas was consumed by Nigerians in 2020 and about 65 per cent of the product was imported by marketers.

    ”So the price of gas is affected by what is happening in the global market because though Nigeria produces about four million metric tonnes of gas annually, only 350,000MT is allocated to the domestic market.

    “Unfortunately, the government cannot increase the allocation to meet our full domestic demand without the buy-in of other partners of NLNG.”

    Essien told NAN that the hike in the price of cooking gas was affecting the government’s National Gas Expansion Programme, which was aimed at deepening gas utilisation in Nigeria.

    He noted that some users of LPG were gradually reverting to the use of kerosene and firewood with the obvious health implications.

    Marketers generally believe that it is not feasible for the government to unilaterally direct the Nigerian Liquefied Natural Gas Company Limited (NLNG) to increase its domestic LPG allocation without the support of other stakeholders.

    Experts are of the opinion that a considerable increase in domestic LPG allocation would translate to a reduction in the price of gas as against the current soaring price of the essential commodity.

    NLNG is an incorporated Joint-Venture owned by four shareholders.

    They are: the Federal Government of Nigeria, represented by Nigerian National Petroleum Corporation (NNPC )(49 per cent) Shell Gas B.V. (25.6 per cent) Total Gaz Electricite Holdings France (15 per cent) and Eni International N.A. N. V. S.àr.l (10.4 per cent).

    Indeed, many ordinary Nigerians are agonising over the effect of the soaring price of cooking gas.

    For instance, a food seller, Mrs Iyabo Oni, told NAN that the increment in the price of cooking gas was affecting her business negatively.

    “I have started using firewood to support my cooking because gas is very expensive and customers will be grumbling if you increase your food cost.

    “The challenge is that the process is more difficult for me because I like my restaurant to be neat always,” she said.

    Also, Mr Okechukwu Agwu, a banker and bachelor, said he preferred buying food now because of the increment.

    He said: “I used to refill my small camp gas with less than N2,000 but things have gone up so I just buy food to eat now. I think it is cheaper and less stressful for me.”

    The price of a 12.5kg cooking gas cylinder has increased from N3,300 in December 2020 to about N5,000 at retail outlets in the past few weeks.

  • DISTURBING PHOTOS: Woman dies from severe burnt after making call close to cooking gas

    DISTURBING PHOTOS: Woman dies from severe burnt after making call close to cooking gas

    A woman has reportedly died from severe burnt after making a phone call close to cooking gas, a Facebook user identified as Okechukwu Christabel Chetanwa has revealed.

    The Facebook user shared the photos of the woman who died after suffering severe burns while answering a phone call close to her cooking gas on Saturday.

    Friends took to Facebook to share photos of her burns after the incident as they prayed for her to survive. Unfortunately, her health took a turn for the worse and she died.

    Her friends are mourning her on Facebook while warning people to desist from answering phone calls near a cooking gas.

    SEE PHOTOS BELOW: