Why the price of LPG has remained stable in recent times

[General Moderator]

Without any molecule of doubt, the stability of the price of cooking gas at the LPG depots in recent times is attributable to the steady supply of LPG from domestic suppliers into the Nigerian market.

The price of 20 Metric Tons of LPG has remained steady for over a month, oscillating between N11,950,000 – N12,200,000, at the Nigeria's coastal LPG depots.

On the 1st of January, 2023, Alfred Temile, the chartered LPG vessel of Nigeria Liquefied Natural Gas(NLNG) was in Lagos to discharge at Nipco and possibly, 11 PLC.

The 13,000 Metric Tons LPG Carrier, laden with LPG cargo loaded from NLNG's Bonny Plant, is again expected to berth in Lagos between the 6th -9th of January.

Also, another LPG Carrier named Navigator Capricorn, also with a capacity of 13,000 Metric Tons, loaded from NLNG's Bonny Island Plant between December 29th, 2022 and January 1st, 2023, and is currently in Lagos to discharge its cargo.

If the NLNG remains consistent with its supply to the Nigerian cooking gas market, then the recent hike in the international price of LPG may not have a serious impact on the domestic market pricing template.

This is because Nigerian cooking gas (LPG) marketers will have no reason to source for forex at exorbitant rates to import expensive LPG cargos at high freight and logistical costs; invariably leading to hikes in the retail price of cooking gas in the country.

NLNG therefore needs to be commended and encouraged to sustain, and even ramp up its supply volumes to the domestic Nigerian market.

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