NLNG explains cooking gas price hike
The Nigeria Liquefied Natural Gas Limited (NLNG) has stated that the high cost of liquefied petroleum gas (LPG), commonly called cooking, was caused by shipping cost, delay of cargo discharges at receiving terminals in Lagos and the fact that its price is based on international price index.
Its General Manager, External Relations, Kudo Eresia-Eke in a statement, stated that the company noticed recent media reports on LPG price increases in the domestic market and it has become imperative to explain some of the causes of the price increase.
He said 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 Apapa-Lagos. That price is invoiced in naira at the prevailing official interbank exchange rates, contrary to erroneous assertions made in parts of the media.
The reality of this is that although LPG is produced and consumed locally, the product, like crude oil, is an internationally traded commodity with an international price benchmark, open to global demand and supply pressures.