Marketers blames multiple operational costs for high cooking gas’ retail prices

• Say reduction in gantry price does not translate to reduction in retail price

MARKETERS under the auspices of the Nigeria Association of Liquified Petroleum Gas  Marketers (NALPGAM) have blamed multiple operational costs/levies for the high cooking gas’ retail prices in the country.

In  his response to  Nigerian Tribune on Wednesday, Executive Secretary/ CEO, NALPGAM,  Bassey Essien, listed 17 different costs being incurred by marketers of cooking gas in the processes of getting the product across to Nigerians, irrespective of their locations.

According to Essein, LPG is a highly logistics-dependent commodity, with  a cost chain between the gantry and the consumer.

“A reduction in gantry price does not automatically translate into an equivalent reduction in retail price because LPG is a delivered commodity, and the cost structure between the gantry and the consumer is substantial.

“For example, if LPG is available at ₦950/kg at the gantry, the marketer still has to move that product from the gantry/depot to the LPG plant or distribution point,” the NALPGAM’s executive secretary said.

He listed haulage/freight cost; truck loading and transportation expenses; bridging or other applicable logistics costs;depot/terminal handling charges; plant receiving and handling costs; storage and inventory financing costs; staff and operational costs; electricity/diesel costs for plant operations; maintenance of LPG storage, pumps, filling equipment and safety systems; cylinder handling and maintenance; and statutory regulatory/licensing and compliance costs as some of the expenses being incurred by marketers of cooking gas.

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Others, according to him, included  insurance and other statutory/business…