- Marketers seek statistics on consumption
Ejiofor Alike
The scarcity of Liquefied Petroleum Gas (LPG), better known as cooking gas, which was expected to have eased following the discharge of 13,000 metric tonnes by the Nigeria LNG Limited in Lagos in the middle of this month, has persisted as a result of delays in the arrival of another vessel from the Bonny Island plant of the company, THISDAY has learnt.
To stem the tide of persistent dislocations in the supply chain, the marketers of the product have also called for statistics on national consumption to ensure consistent additional supply to keep pace with the astronomical increase in LPG consumption in the country.
NLNG’s General Manager in charge of External Relations, Dr. Kudo Eresia-Eke, who had confirmed the discharge of the 13,000MT over two weeks ago, had also added that the “vessel is scheduled to return to NLNG’s facility in Bonny to re-load”.
But marketers, who spoke to THISDAY at the weekend, said the new vessel was yet to arrive Lagos, adding that the delays have continued to keep the domestic price of the product very high.
“The first vessel that discharged two weeks ago was delayed and that led to the present high cost of the product. The vessel was delayed because NNPC gave the discharge of aviation fuel preferential treatment. Even when LPG vessel is the next in line to discharge, they always sideline it and allow vessels carrying other petroleum products to discharge first before LPG. When the LPG finally discharged two weeks ago, the market was already too hungry for product and the quantity was like a drop in the ocean,” one of the marketers explained.
Another marketer told THISDAY that another vessel should have arrived Lagos to ease the tension in the market, adding that the non-arrival has continued to create scarcity, which is evident in the high cost of the product.
“We have been expecting another vessel since last week but it has not arrived. That is why the price is still very high. Demand has outstripped supply. So, there should be statistics on national consumption. The projection of the government is that additional two million people should use LPG every two to three years. Supply to the domestic market is not commensurate with this expected additional demand. NLNG started by setting aside 100,000MT for the domestic market yearly. They have increased it to 250,000MT and promised to increase it further to 350,000MT but it is still 250,000MT officially. Other marketers also import to augment NLNG’s supply. But this is not commensurate with yearly increase in demand,” he explained.
“So, to end this persistent crisis, there should be increase in domestic supply. Secondly, vessels should come in as at when due. Again, NNPC should stop sidelining LPG vessels in the discharge of product,” he added.
NLNG had also attributed the current hike in the price of the product to what it described as the recent delays in the discharge of LPG vessel at the receiving facilities in Apapa, Lagos.
The company had also argued that the multi-use terminal at Apapa, which accord berthing priority to vessels discharging other petroleum products led to the temporary supply disruption.
Also in line with the position of LPG marketers that the international pricing of the product also contributes to the price hike, Eresia-Eke also admitted that Nigeria LNG’s domestic LPG price is based on an international price index plus 50 per cent of the shipping cost of delivering the product to receiving facilities in Lagos.
According him, that price is invoiced in Naira at the prevailing official interbank exchange rates.
