The price for refilling a 12.5kg cylinder of Liquefied Petroleum Gas, commonly known as cooking gas, has surged by 34.6 per cent on a Week-on-Week basis, climbing to N17,500 this week from N12,750 recorded the previous week.

Checks confirmed that the price of 1kg currently retails for between N1,350, N1,400, and N1,500, with variations depending on the location.

In a phone interview with The PUNCH, Mr. Olatunbosun Oladapo, the National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, attributed the recent sharp increase to the industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria, which significantly impacted the supply value chain, particularly in the South-West region.

He explained that the LPG business operates on the principles of demand and supply, noting that when supply is constrained, high demand inevitably results in a price hike.

Oladapo detailed the situation, stating: “As at the time PENGASSAN embarked on the strike, all gas plants were shutdown, most gas plants have limited supply. Dangote, our major supplier in terms of availability and affordability of the product, is yet to release loading invoice to our members who have pending products with the company for more than three weeks forcing marketers to buy from other competitors at a high rate.”

Oladapo further explained that other suppliers took advantage of the market conditions, saying: “Other competitors, took advantage of the challenges most of our marketers are facing with Dangote and also the industrial action to increase their price.”

He acknowledged that marketers must purchase the product to keep their businesses operational: “No marketer will want want to leave his plant empty, therefore, they buy from these competitors.”

The NALPGAM President concluded with an appeal to the major supplier to alleviate the supply crunch and expressed optimism for future relief, adding: “We appeal to Dangote to truck out product to more marketers as this will enhance the supply. We are hopeful the price will drop in the coming weeks.”