Gas prices may rise against over forex exchange rate

Nigerians may pay more for cooking gas as marketers have cried out that high exchange rate of dollar to naira is seriously hampering their importation of the commodity.

The Punch quotes National Operations Controller, the Independent Petroleum Marketers Association of Nigeria, IPMAN, Mike Osatuyi, as saying on Sunday that independent marketers sourced dollars for importation from the black market, hence, gas price would continue to increase until naira becomes strengthened at the exchange market.

“Our members, who still sell gas, bought 20,000 metric tonnes at around N11 million last month, but now, the price has jumped to N12.3 million per 20,000 metric tonnes,” he said.

Apart from low gas supplies at the international market majorly due to the Russian/Ukraine war, The PUNCH also learnt that gas production from the Nigerian Liquefied Natural Gas Ltd, NLNG has plummeted.

According to sources close to the matter, the drop in output was majorly due to the high-leveled theft as well as oil and gas pipeline vandalism which had left NLNG operating at 60 per cent capacity.

The source also cited “feed gas constraint and high maintenance activities” as part of the causes.

Output and export from NLNG’s six-train Bonny plant had dropped to 16.8 million tonnes in 2021, from 20.7 million tonnes in 2020 and 2019.

The NLNG was said to have lost almost $7bn revenue so far in 2022 due to gas supply constraints, according to the company’s General Manager, Production, Adeleye Falade, who spoke at the 45th Nigeria International Conference and Exhibition 2022.