Forex, infrastructural constraints worsen Nigeria’s LPG market

The continuous rise in the price of Liquefied Petroleum Gas (LPG), otherwise called cooking gas in Nigeria, may continue for a while if challenges relating to foreign exchange, infrastructure, and planning are not addressed now. More Nigerians may be forced to revert to alternative unclean energy sources like firewood, and other dirty fuels.

This was the position of the Executive Secretary, National Association of Liquefied Petroleum Gas Marketers (NALPGAM), Bassey Essien, and the National Chairman, Liquefied Petroleum Gas Retailers, a branch of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Chika Umudu, who spoke in separate interviews.

Essien said since the LPG market is deregulated, it means its price is determined by the prevailing exchange rate of the naira to the United States dollar. Similarly, Umudu decried the bad state of the market, saying that but for the weakness of the naira, and the dearth of infrastructure, Nigeria should be experiencing a drop in the price of the product.

Source: The Guardian



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