Olayiwola Matthew
Bayo Ojulari, Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, says the recent steep increase in the price of liquefied petroleum gas (LPG), commonly called cooking gas, is tied to the strike action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
Ojulari made the remarks to state house journalists on Sunday during a courtesy visit to President Bola Tinubu.
Observations on Monday revealed that gas prices spiked in Lagos, with 12.5 kg cylinders being sold for as much as N26,000 (about N2,080/kg) in areas like Amuwo Odofin. In Iyana Ipaja, the same cylinder was priced at N27,000 (N2,200/kg).
In Abuja, pricing was slightly lower, with the 12.5 kg cylinder retailing for N20,000 (equivalent to N1,600/kg) around the Dutse axis.
This latest pricing reflects a 48.57 per cent jump from the previous standard rate of N17,500 for a 12.5 kg cylinder.
Speaking on the spike, Ojulari said some marketers and retailers with stocks on hand also raised their prices, worsening the overall impact.
Despite that, he assured the public that the spike was “relatively artificial,” blaming the strike for disruptions in movement and loading over two to three days.
“And because of that, you see that impact as things return back to normal. It takes some time for distribution to be fully restored,” he said.
He added: “And of course, as you know, in Nigeria, people take opportunity. With that delay, some of the people that have existing resources and reserves had to put up the price.”
Ojulari expressed optimism that prices would gradually return to pre-strike levels once normal operations resumed.
He also noted that on October 1, PENGASSAN suspended its nationwide strike, which had been called in response to Dangote refinery’s dismissal of some workers.
Following governmental intervention, Dangote Group agreed to redeploy the affected workers, he said.