Downstream operator urges FG to increase domestic supply of LPG

expands LPG supply via skid stations

To address the hike in the price of Liquefied Petroleum Gas (LPG) in the country, the Managing Director of Petrocam Trading Nigeria Limited, Patrick Ilo, has urged the Federal Government to make a concerted effort in making sure Nigeria LNG(NLNG) increase its LPG supply to the market.

To increase access to the product, Ilo said his firm has formally opened a new solar-powered, five metric tonnes LPG filling skid station in Itele Road, off Isunba-Lafenwa Road, Ogun State.

The firm’s investment in LPG bulk storage and retailing through active participation in LPG distribution channels are designed to ensure the products get to the consumers in high quality and safety.

Ilo stated that one of the major reasons the product is very costly is because NLNG is not supplying enough products around the country despite a growing number of LPG users.

While lamenting that the government is not putting its words into action, Ilo said a lot of people have embraced LPG as a primary source of cooking at home, which is a welcome development to the industry, despite the supply challenge.

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

According to him, another factor responsible for LPG price hike is the instability of the exchange rate in recent times, therefore, impacting the cost of importation.

Ilo revealed that 7.5 percent value-added tax (VAT) imposed by the government on gas importation is another reason the price of gas has actually skyrocketed.


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