Energy
NALPGAM Blames Terminal Operators For Gas Price Hike
The incessant hike being experienced in the price of gas has been traced to terminal operators.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) made the claim on Monday in Abuja, before the Senate in the hallowed chambers of the National Assembly.
NALPGAM members, led by President, Oladapo Olatunbosun opined that terminal operators were manipulating supplies to influence supplies and pricing.
According to them, whereas the Nigeria Natural Liquefied Gas has been consistent with its supply, the cabals have disrupted the availability of gas to Nigerians.
Olatunbosun described some of the terminal operators as the cabals who bought the product cheaply from the source and sold at a very high price to them.
He said, “The cabals are making it difficult for the average Nigerian to have access to gas. As of today, gas is sold by these terminal owners for N16.8 million for 20 metric tonnes whereas NNLG sells to them for a little bit less than N9 million.
“Some of them are NAVGas, NIPCO PLC, Matrix Energy Ltd, Prudent Energy Ltd, Shafa Energy, Techno Gas, StockGap Ltd, Mobil, Pan Ocean Limited, NNPC, OLogbo, NSPC Apapa, SHELL, Dozzy LPG terminal.”
On the economic and lifestyle implications, he lamented the untold hardship the activities of the cabals were bringing upon Nigerians.
“When people go to fill their gas today, the least they get is N1,200 per kilogramme – imagine the pains of Nigerians. In the Nigeria of today, can a student or menial worker afford to cook a cup of beans with a N1,200 cost of gas?” he asked.
This should not be, he maintained.
Olatunbosun noted, “Even countries like Cote d’Ivoire, Ghana and the rest are no match to Nigerians in terms of gas production but the prices of gas is cheaper in those countries that here where we are the second largest producer of the gas in Africa after Algeria, yet our people cannot afford to cook with gas.
“We produce gas more than we import. In fact, the proportion imported is so insignificant, but these cabals have refused to allow Nigerians to enjoy the dividends of this production and the efforts put in by the government.”
They alleged that the terminal operators usually hid under forex as one of the reasons for the increase in the prices of gas whereas the transactions were done purely in naira.
The President of the association explained, “These cabals have also made the practice of hiding behind forex but the question is does NNLG get paid in dollars? No. All the transactions are completed in naira. What is the role of forex in this situation? Where is the import evidence?
“You buy gas for N9 million from NNLG and pay in naira, then you sell the same gas for N16 million and blackmail the government.
“When people get to our plants and we tell them the price, they start weeping and cursing the government whereas, the government has done their best to make life bearable to the people.”
The NALPGAM cautioned that if measures were not taken to adequately address these issues, by December, 12,5kg gas would be selling for N25,000.
Olatunbosun added, “If we don’t rise up and checkmate the whole thing, the gas would become a luxurious product available to only the rich.
“By December, these cabals might start to sell 20 metric tonnes for N200 million. This would mean that gas will sell for 2,000 per kg and N25,000 for 12.5kg.”
The marketers further lamented that the utilization level in Nigeria was quite low due to poverty and other factors.
“We are operating 1.2 million metric tonnes per annum but if we look at our population, we ought to be operating around 6 to 7m metric tonnes per annum but due to availability and affordability; we can’t operate at that level yet.
“And when gas prices went up, the level of consumption dropped, at the moment, the level of usage is between 750,000 to 900,000 metric tonnes per annum.
“And our forest will suffer for it, people will go into the deforestation to get wood and charcoals to cook,” he pointed out.
Olatunbosun noted, “This is the kind of hardship that the few cabals have subjected poor Nigerians to which is worrisome particularly because it would continue to sell the wrong perception of this administration to Nigerians as not doing anything for the public.
“The problem is that there is no regulation, NNLG is aware of all these but they have refused to interfere in the issue.
“It seems like the voiceless have no one to defend them, hence the reason why we have come to the Senate to cry out for help for the poor Nigerians.”
Chairman, Senate Committee on Gas, Sen Jarigbe Jarigbe, assured the marketers that the Senate would not let the issue slide.
Ge described it as a very important national issue, to which attention must paid.
Senator Jarigbe said, “I have listened to you on behalf of the committee and the Senate.
“You know that this administration has talked about improving gas supply, LPG and there is a new revolution in terms of Compressed National Gas for vehicles to cushion the effect of the Subsidy removal.
“As it concerns your complaints that NLNG sells to the terminal owners for about 10m for 20 metric tonnes and they sell to you the markets with about N7 million margin; which would have a negative multiplier effect in the value chain of that to the final consumer, this is what the Senate will not agree with.
“And I know the executive will not agree with it either because that is not the intention of Mr. President.”
He added, “I want to thank you for your courage because it would have been possible for you to compromise at this stage but you decided to speak up for the common man.
“I would do more than what you have done. When the Senate President on a lighter note said Nigerians have to ‘breathe’, it doesn’t mean for the very poor, it’s for Nigerians.
“We must allow ourselves to breathe, there is nobody that is not using gas today except those in the interior villages.
“With the issue of climate change and greenhouse gas emissions, we will do our best as a Senate to support you and support Nigerians because we were voted to represent our people and it is our job to protect them.”
“We promise to match words with action.”
Amid a slight increase in gas production, Nigeria’s oil output experienced a substantial rise in November 2024.
Gas production saw a 2.9% month-on-month (MoM) increase, reaching 2,292,951 million standard cubic feet (MSCF) from 2,292,471 MSCF in October.
However, on a year-on-year (YoY) basis, the growth was minimal, with a mere 0.02% increase in output for the first 11 months of 2024, compared to the same period in 2023.
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The latest gas report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also revealed a 1.6% increase in domestic gas consumption.
A total of 606,658 MSCF was consumed locally, compared to 596,861 MSCF during the same period in 2023. Gas exports, meanwhile, rose by 6.9%, reaching 829,156 MSCF, up from 775,547 MSCF in the corresponding period of 2023.
This growth in exports continues to play a vital role in bolstering Nigeria’s foreign exchange earnings.
Despite these positive figures, sources close to the Ministry of Petroleum Resources (Gas) noted that oil remains the dominant force in Nigeria’s energy sector, with gas taking a secondary role.
On the other hand, the NUPRC’s oil production report revealed a remarkable surge.
Nigeria’s oil output, including condensates, rose by 13.3% year-on-year in November 2024, reaching 1.7 million barrels per day (bpd), up from 1.5 million bpd in November 2023. Month-on-month, oil production also increased by 10%, from 1.5 million bpd in October 2024.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), discussed the broader structural dynamics within Nigeria’s economy, highlighting the dominance of the non-oil sector.
In his 2025 Outlook, Dr. Yusuf noted that the non-oil sector contributed 94.43% to Nigeria’s GDP in Q3 2024, while the oil sector accounted for just 5.57%.
“However, the economy is characterized by a paradox of the oil sector contributing an estimated 90% of foreign exchange earnings, while the non-oil sector accounts for about 10%,” Dr. Yusuf said.
“This is a structural shortcoming in our economy which needs to be addressed, as sectors that contribute hugely to GDP have no corresponding contribution to foreign exchange earnings.”
He further emphasized the need to address the challenges faced by the non-oil sector, which include issues related to productivity, infrastructure, funding, and regulatory constraints.
“The policy implication is that more should be done to fix the challenges of productivity and competitiveness of the non-oil sector of the economy,” Dr. Yusuf added
The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, has become operational.
This is coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.
The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, made the disclosure during a tour of the facility on Monday.
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A video posted by Channels TV on Monday showed Kyari addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
Before the tour commenced, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.
According to him, although the repairs on the facility are not yet 100 per cent complete, operations have commenced.
He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”
Located in Ekpan, Uwvie, and Ubeji, Warri, the petrochemical plant produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black.
Commissioned in 1978 and managed by NNPC Ltd, the WRPC was built to supply markets in the southern and southwestern regions of Nigeria.
The mechanical completion of the facility was initially scheduled for the first quarter of 2024, according to the Spokesperson of the NNPC Ltd, Olufemi Soneye.
“Warri should be done by Q1 (first quarter) 2024,” Soneye stated.
The WRPC is one of Nigeria’s four refineries. Others include the old and new Port Harcourt Refining Company in Rivers State and the Kaduna Refining and Petrochemical Company in Kaduna State.
MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has implemented a new petrol price of N935 per litre across all its retail service stations nationwide.
The company has also called on Nigerians to monitor and report any outlets that fail to adhere to the new price structure.
Biztellers reports that this is consequent upon an announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery has partnered with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, following a reduction in the ex-depot price from N970 to N899.50 per litre.
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It was gathered that MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.
In a statement on Monday night, the company declared, “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email: NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM”
Emphasising the eco-friendly nature of its products, MRS Oil added, “We call on all petrol station owners to join MRS Oil Nigeria Plc in improving the supply chain of our beloved country, ensuring product quality and availability in every corner of Nigeria for the benefit of all Nigerians.”
In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol, with many expressing their gratitude to the Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.
A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, Ibukun Phillips, could not hide her joy as her husband filled up their car.
“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. But beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only be using MRS from now on because we are confident in the quality of the product and supporting the economy.”
A commercial bus driver, Adio Ajibade described the price reduction as a great relief, especially during the festive season.
“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.
A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.
According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”
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