Breaking News

Manufacturers flay N58.70 per. scm new gas price

Kindly Share This Story:

By Angela Okeke

Local manufacturers have faulted the new gas price regime of N58.70 per. scm  by local  gas companies and suppliers, saying it will escalate their operating costs and make their products uncompetitive.

They have also demanded that the price of the commodity should be detached from (LPFO) Low Pour Fuel Oil, and Automotive Gas Oil Oil (AGO).
According to the Chairman of MAN Gas user Group, Prince Felix Oba Okojie, gas price should be detached from being benchmarked against LPFO as there is no where in the world where the price of the commodity is benchmarked against any petroleum product, as the constant fluctuations in the pricing will not be healthy for industrial gas users in terms of production planning and costing.

He lamented, that manufactures massive investments have now become totally eroded due to the anomaly in the present gas price regime.

The group, he stated, therefore, recommended that in view of the continued escalation of price of LPFO as a result of importation, deregulation and other variable cost attached to it such as sea freight and inland transportation, it is no longer economical and logical to benchmark gas price against the price of LPFO.

“We would like to suggest that the pricing strategy of natural gas should be change from the present benchmark on LPFO by taking into consideration the cost elements of producing and distributing a standard cubic metre of gas.

“Government through the appropriate regulatory agencies should now fix the price of gas with due involvement of all the stakeholders like Nigerian Gas Company Limited(NGC), Distributors as well manufacturers.
The new price of Gas should have no link with LPFO as gas is a natural resource of the nation and much of it is being flared as waste. he said.
self generating power plant fuelled by Natural gas, LPFO and AGO.
The industrial consumer has witnessed at least four price bursts, especially in LPFO from N25.40 to N48,N57, N64, N72 per litre, while there is sharp decline in the price of petroleum products globally, he said.

Kindly Share This Story:
All rights reserved. This material and any other digital content on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from VANGUARD NEWS.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.
Do NOT follow this link or you will be banned from the site!