DANGOTE Petroleum Refinery sells a kilogramme of liquefied petroleum gas (LPG), popularly known as cooking gas, at N760 but middlemen, including gas stations, sell at more than N1000, according to a close source to the refinery.
An economist and petrol expert, Mr Kelvin Emmanuel, who is close to the refinery, claimed: “Dangote is offering the markets at #760 per KG, but the marketers are selling cooking gas at over #1,000 per KG because of collusion in fixing the prices.”
He explained that the middlemen were making even more money than the commercial refiner purchasing Nigerian crude at a premium. “If Dangote goes to China to buy LPG trucks to do forward integration to the last mile, they will start shouting monopoly,” he noted.
The claim was confirmed by a member of the All Progressives Congress (APC), Mr Imran Muhammad, who wrote on X: “Dangote Refinery has once more reduced the ex-depot price of its Cooking Gas, decreasing it from ₦810 per kilogram to ₦760 per kilogram.”
READ ALSO: Gas stations shut, petrol scarcity looms as Dangote-PENGASSAN strike continues
Gas has been a scarce commodity since the rift between Dangote Petroleum Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) was resolved last week. Cooking gas price hit N3200 per kg last Friday, indicating a 100 percent increase from the N1600 per kg recorded three days earlier, BusinessDay had reported.
Source: Daily Post
Our correspondent in Abuja could not find gas on Tuesday at Kubwa and Wuse Zone 5 as at the time of going to the press. Energy industry watchers predicted middlemen-triggered gas scarcity, which is disrupting the nation’s stable economy.
The essential commodity has remained scarce as of the time of writing this story. Economy Post had reported that on Tuesday morning, cooking gas scarcity had deepened in Lagos, with buyers unable to get the product at Cele, Oke-Afa, Oshodi, Iyana-Ipaja and Ijeshatedo. A station Ejigbo Local Government Area sold the product, but the price was higher at N1,200 -N1600 per litre as against N1,000 per litre sold two weeks ago.
Prices of cooking gas hovered between N1500/kg and N3000/kg on October 7 as families struggle to have 3 square meals in 24 hours.
Reactions
Netizens have reacted to the situation, stating that middlemen are responsible for citizens’ current gas struggles. An X user,@NFPJNig, wrote: “China will not allow the level of unserious and corrupt actors Nigeria has in the Oil and gas sector. A product as important for the wellbeing of their citizens will be regulated at all levels, that is why the cooperation with China is flawed.”
Another X user, @jaysnipes10, tweeted: “I bought 2kg of gas yesterday for 5k, and the funniest thing is that the seller was selling from an almost empty tank which means he bought it long time ago before the sudden price soar. Nigerian are very greedy people. We are no different from our politician.”
READ ALSO: DAPPMAN accuses Dangote Refinery of cutting petrol prices after sales to members
Yet another X user, @Dr_Esman, wrote: “It’s the same in almost all business… Once the middle men are left unchecked, they take advantage… The same reason why we have NNPC filling station all over the country is the same reason why we need DANGOTE retail station accross the country.”
Also, another X user, @HenryOfoegbu2, tweeted: “Please Dangote should own all the distribution chains . What nonsense are we witnessing in this country . Govt needs to do better if they are not conniving with this crooks.”
More so, @icecycloAne, wrote: “The middlemen are ripping Nigerians. Currently they sell somewhere in the region of 1,200. The last mile is where the problem lies. These apply to other sectors. Inflation is not going down because of these greedy men.”
@daenys, noted: “They don’t understand that Dangote’s business is based on turn over not profit so the more people buy the more he makes cheap products lead to large volume of purchase.”
:
