FOREX volatility contributes to cost of cooking gas –Gas plant manager

The Plant Manager of Sky Wave Energy and Gas Ltd., Mr Umoro Samuel, on Thursday said foreign exchange volatility contributed to high cost of cooking gas.

Samuel made the observation in an interview with our correspondent in Keffi.

According to him, high import duty pushes the price of gas to roof top.

He observed further that the rising cost of gas could have social consequences as well as worsen the economic hardship for the people.

“This increase in price of gas has already occasioned low patronage and I am not happy about it.

“So, the increase in gas was as a result of foreign exchange volatility and high import duties that push gas prices to the rooftop.

“Previously, we are selling 12.5kg cylinder at the rate of N7,000, now it sells for N 7,250, 6kg before sells for N3,600, now it is N3,980, 5kg sold for N2,800, now it is N2,900 and 3kg before was N1,680, now it is N1,740, 50kg cylinder was previously sold at N28,000, but now it is N29,000”, he said.

Samuel said that they had “been cutting costs for the retailers to enable them make profit when they resell to consumers; they sold 12.5kg to retailers at N7,000, which they resell to consumers at N7,250.

Samuel said also that insecurity in the country was not helping the situation.

He said that one of their trucks had mechanical problem on Okene Road, on its way to Keffi in October 2012 and the driver was kidnapped.

He said they were asked to pay N1 million before the driver would be released.

Samuel said that insecurity “is one of the numerous challenges that face gas distribution in the country and the high cost of cooking gas”.

One of the retailers in Keffi, Mr John Moses, said that since November till date, they have been experiencing hike in the price of cooking gas.

He said that the high cost of gas and kerosene had forced many Nigerians to return to the use of charcoal and firewood for cooking.