Oando Plc, an indigenous major player in the oil and gas sector, is making investments in the Liquefied Petroleum Gas (LPG) business to ensure availability of LPG, stem the rising cost of the LPG and boost its utilisation by Nigerians.The price of LPG, also known as cooking gas, has skyrocketed in Nigeria to over N3000 per 12.5kg cylinder from an initial N2000 sold three years ago. Other products such as kerosene, firewood and coal are being preferred in place of LPG as sources of energy for cooking, on the excuse that LPG is an elitist product and as such is very expensive.It was for this reason that Oando Plc decided to introduce such packages as pay-as-you-go system and the smaller size cylinders initiative to procure the product at the volume and quantity people can afford.Speaking at the Nigeria LPG Associations meeting in Lagos, recently, LPG manager of Oando Plc, Mr. Adeyemi Oreagba, said that the company, having realised that major challenge to LPG consumption was the cost of the product, decided to bring in packages that would elicit interest in the product and shoot up demand.After conducting research, we found that one major obstacle militating against the use of LPG in Nigeria is the unavailability of the product in quantity that is affordable to low income consumers. To overcome this, we felt there was need to come up with initiatives that will allow customers to buy whatever they can afford. And that is why we came up with the pay-as-you-go system, he said.With this system, if a customer runs out of gas and has N800 on him, he can be able to refill with quantity that is worth N800. This is first of its kind in Nigeria. The other system we are deploying is to get smaller-size cylinders for people to pay for the cylinders over a period of time. When these smaller-size cylinders are available, then the refill cost will come down at any single point in time. We will now have something less than the usual 12.5kg that is common in the market so that customers will be able to make their choice. There will be 3kg, 5kg and other lesser quantities, he reiterated.He said Oando would empower retailers through credit financing which is expected to ensure availability. Right now, we are ready to bring in these smaller cylinders to empower retailers in form of micro franchises by giving them these cylinders and allowing them to sell to people in the rural and sub-urban areas and get their monies over a period of time.This will reduce the burden and weight of the initial investment on the consumers as they will have to pay for the product over period of time. No doubt this will eventually facilitate the switch from kerosene and firewood to LPG, he stated.He assured that the companys infrastructure was capable of helping to carry out these initiatives as there are 600 retail outlets, numerous warehouses, transporters and efficient workforce to support and drive the project.
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