Why Gas Price Is Soaring – Petrocam Boss Reveals

Why Gas Price Is Soaring – Petrocam Boss Reveals

As the price of Liquefied Petroleum Gas (LPG), otherwise known as cooking, soars, the Managing Director Petrocam Trading Nigeria Limited, Mr. Patrick Ilo, has urged the Federal Government to ensure that the Nigeria Liquefied Natural Gas (NLNG) allocate more gas to the domestic market to meet the growing demand of the people.

He spoke during the inauguration of the Petrocam Trading Nigeria of a new solar-powered LPG filling skid station in Itele, Ogun State.

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Ilo said one of the major reasons the product is costly is because NLNG is not supplying enough product to go round the country and the country has enormous users of LPG.

“As we speak, the allocation they give to people like us is very minute. They give us allocation for the commodity once in two weeks and it is around 200 metric tonnes. We depend on imported LPG,” he explained.

Yet, the instability in the exchange rate, Ilo noted, is another factor responsible for the soaring price of gas in recent times as this has affected the cost of importing the product.

He said 7.5 per cent value added tax (VAT) imposed by the government on gas importation constitutes yet another strain on gas price.

“The government  is proposing the NLNG to use Train 7 and with it, there will be more products for domestic market. In the main time the government should make concerted effort in making sure NLNG give more LPG to the market in order to meet the growing demand of the people,” he added.

IIo said the new station, with five metric tonnes capacity, is part of the firm’s contribution to making the commodity affordable to the people.