Marketers Attribute Price Decrease in Cooking Gas to International Activities

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Former President, Nigeria Liquefied Petroleum Gas Association (NLPGA), Mr Nuhu Yakubu, has attributed the decrease in the retail price of cooking gas in the country to the fall in price of the product at the international market.

Yakubu said this in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos, against the backdrop of reduction in price of Liquefied Petroleum Gas (LPG) in Nigeria.

According to the U.S. Energy Information Administration, the current price of natural gas dropped by 76.1 per cent to 2.10 per one million dollars British Thermal Units (BTU) on May 31 from 8.78 per one million dollars BTU.

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Yakubu said that the price of LPG dropped because the international reference price in USD had dropped, amidst relatively stable Naira exchange rate.

“So, the ripple effect is being felt locally in retail pump price reduction.

“Current price of LPG depends on location, as you know it’s operating in a deregulated market.

“However price is averaging at N730 per kilogram or N417 per litre,” he said.

Yakubu, also Group Chief Executive Officer, Banner Gas Ltd., said that government had no role in LPG pricing, except to levy taxes on the product.

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He said: “So, government can only help with reducing taxes.

“Government can also help address the issues challenging gas supply as feedstock to major LPG producers like NLNG.

According to him, it will enable increased production of LPG and domestic supply.

“With improved domestic supply comes better retail pump pricing.”

Mr Oladapo Olatunbosun, the President, Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said that the reduction in price of LPG was a commendable effort.

Olatunbosun said that the association was monitoring the development; watching the decline in market price while believing it would continue.

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“All our assessment and recommendations are reserved till when we have a full cabinet of the new government,” he said.

A NAN correspondent, who monitored cooking gas prices at the retail market, gathered that the cost of cooking gas had reduced by 15 per cent.

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Between April and May, the price of refilling a 12.5kg cylinder of Liquefied Petroleum Gas (cooking gas) has reduced between 12 per cent and 10 per cent on the back of lower crude oil prices and a decline in international gas prices.

NAN survey in Lagos indicated that the price of cooking gas is trending downwards to N8,700 currently from N10,500 in April and May.

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Mr Chinedu Okonkwo, a gas retailer at Somolu, Lagos, said that the price fell from N850 per kg by April 30, to N700 and N750, but that still sold at N900 per kg at other local gas retailers in the area.

He said that the development ease some of the burden on cash-strapped households, who had been dealing with a hike in the price of the commodity since January 2022 coupled with surge in petrol prices as a result of subsidy removal.

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Okonkwo said that LPG was an international commodity with about 65 per cent of domestic gas coming from imported sources.

Mrs Sekinat Lawal, a gas retailer at Ikeja, said that gas prices in the country were linked to an international benchmark called Mont Belvieu, which had been on the downward slope for the last couple of months.

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She said that Mont Belvieu was the site of the largest underground storage facility for liquefied petroleum gas in U.S.

“The U.S. LPG market pricing indicator is driven primarily by the Mont Belvieu market and reported daily by the U.S. Energy Administration” she said.

Lawal said that imported gas prices were declining and therefore reflected at the local market.

Another retailer, Mr Francis Evans, Managing Director, Floppy Oil and Gas, said crude oil prices typically influence domestic LPG prices in the international market, adding that as the price of crude oil rise, LPG prices often follow suit.

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“The currency exchange rate is another factor, as importers require dollars to import LPG.

“The rise in the cost of local and international shipping and the surge in demand for LPG during a cold winter are also factors affecting the price of LPG,” he said.

“The United States of America and Argentina are the major suppliers of gas to Nigeria.

“But the Russia-Ukraine war, which started in February last year, triggered a surge in gas prices in these countries, especially the U.S.

But recently, the prices have been falling,” he said.

Credit: Newspot Nigeria

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Sanya Onayoade

Continental Editor, North America

SANYA ONAYOADE is a graduate of Mass Communication and a Master of Communication Arts degree holder from the University of Ibadan. He has attended local and international courses on Media, Branding, Public Relations and Corporate Governance in many institutions including the University of Pittsburgh; Reuters Foundation of Rhodes University, South Africa and Lagos Business School. He has worked in many newspaper houses including The Guardian and The Punch. He was the pioneer Corporate Affairs Manager of Odua Telecoms Ltd, and later Head of Business Development and Marketing of Nigerian Aviation Handling Company (NAHCO Plc).

He has led business teams to several countries in the US, Asia and Europe; and was part of an Aviation investment drive in West Africa. He has also driven media and brand consultancy for a few organizations such as the British Council, Industrial Training Fund, PKF Audit/Accounting Firm and Nigeria Stability and Reconciliation Programme. He is a Fellow of Freedom House, Washington DC, and also Fellow of Institute of Brand Management of Nigeria. Sanya is a member of Nigerian Institute of Public Relations (NIPR), Advertising Practitioners Council of Nigeria (APCON) and Project Management Institute (PMI). He is a 1998 Commonwealth Media Awards winner and the Author of A Decade Of Democracy.
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Morak Babajide-Alabi

Continental Editor, Europe

Morak Babajide-Alabi is a graduate of Mass Communication with a Master of Arts Degree in Journalism from Napier University, Edinburgh, United Kingdom. He is an experienced Social Media practitioner with a strong passion for connecting with customers of brands.

Morak works as part of a team currently building an e-commerce project for the Volkswagen Group UK. Before this, he worked on the social media accounts of SKODA, Audi, SEAT, CUPRA, Volkswagen Passenger Cars, and Volkswagen Commercial Vehicles. In this job, he brought his vast experience in journalism, marketing, and search engine optimisation to play to make sure the brands are well represented on social media. He monitored the performance of marketing campaigns and data analysis of all volumes of social media interaction for the brands.

In his private capacity, Morak is the Chief Operating Officer of Syllable Media Limited, an England-based marketing agency with head office in Leeds, West Yorkshire. The agency handles briefs such as creative writing, ghostwriting, website designs, and print and broadcast productions, with an emphasis on search engine optimisation. Syllable Media analyses, reviews, and works alongside clients to maximise returns on their businesses.

Morak is a writer, blogger, journalist, and social media “enthusiast”. He has several publications and projects to his credit with over 20 years of experience writing and editing for print and online media in Nigeria and the United Kingdom.

Morak is a dependable team player who succeeds in a high-pressure environment. He started his professional career with the flagship of Nigerian journalism – The Guardian Newspapers in 1992 where he honed his writing and editing skills before joining TELL Magazine. He has edited, reported for, and produced newspapers and magazines in Nigeria and the United Kingdom. Morak is involved in the development of information management tools for the healthcare sector in Africa. He is on the board of DeMiTAG HealthConcepts Limited, a company with branches in London, Lagos, and Abuja, to make healthcare information available at the fingertips of professionals. DeMiTAG HealthConcepts Limited achieved this by collaborating with notable informatics companies. It had partnered in the past with Avia Informatics Plc and i2i TeleSolutions Pvt.

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Ademola Akinbola

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Brief Profile of Ademola Akinbola

Ademola AKINBOLA is an author, publisher, trainer, digital marketing strategist, and a brand development specialist with nearly three decades of experience in the areas of branding, communication, corporate reputation management, business development, organizational change management, and digital marketing.

He is the Founder and Head Steward at BrandStewards Limited, a brand and reputation management consultancy. He is also the Publisher of The Podium International Magazine, Ile-Oluji Times, and Who’s Who in Ile-Oluji.

He had a successful media practice at The Guardian, Punch and This Day.

He started his brand management career at Owena Bank as Media Relations Manager before joining Prudent Bank (now Polaris Bank) as the pioneer Head of Corporate Affairs.

The British Council appointed him as Head of Communication and Marketing to co-ordinate branding and reputation management activities at its Lagos, Abuja, Kano and Port Harcourt offices.

In 2007, he was recruited as the Head of Corporate Planning and Strategy for the Nigerian Aviation Handling company. He led on the branding, strategic planning and stakeholder management support function.

His job was later expanded and redesigned as Head of Corporate Communication and Business Development with the mandate to continue to execute the Board’s vision in the areas of Corporate Planning and Strategy, Branding and New Businesses.

In 2010, he voluntarily resigned from nacho aviance to focus on managing BrandStewards, a reputation and brand management firm he established in 2003. BrandStewards has successfully executed branding, re-branding and marketing communication projects for clients in the private and public sectors.

Ademola obtained a M.Sc. Degree in Digital Marketing & Web Analytics from Dublin Institute of Technology in 2016, and the Master of Communication Arts degree of the University of Ibadan in 1997. He had previously obtained a Higher National Diploma (with Upper Credit) in Mass Communication from Ogun State Polytechnic, Abeokuta.

He has published several articles and authored five management books.

He has benefitted from several domestic and international training programmes on Brand Management, Corporate Communications, Change Management and Organizational Strategy.
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