GASLINK TO RAISE GAS PRICES

The Manufacturers Asso-ciation of Nigeria (MAN) has said over 100 manufacturing companies in the country could be shut down with 50,000 employees thrown out of work if Gaslink Nigeria Limited implements its recent decision to raise the price of industrial gas by over 200 per cent.

MAN said yesterday in Lagos that Gaslink, a subsidiary of Oando Plc, was “set to put the last nail on the coffin of the dying Nigerian manufacturing sector by increasing the price of industrial gas from N21.05 per scm to N63.27 per scm”.

But in response to MAN’s allegations, Oando’s spokesperson, Mr. Niyi Olowola, told THISDAY yesterday that Gaslink was still negotiating with its customers on the issue and was positive that they would come to a common ground.

“Gaslink’s management understands the challenges our customers face and is positive that the issues on ground will be resolved in a matter of days. Already, another meeting is scheduled for tomorrow (today) towards achieving an amicable resolution,” Olowola said. “Only nine of our over 80 customers are yet to make any form of payment for our services, which indicates a large degree of cooperation.”

The gas price hike has resulted in a major rift between Gaslink and MAN.MAN accused Gaslink of disregarding the Gas Sales and Purchase Agreement (GSPA) signed between the gas company and members of MAN.Explaining the GSPA, the Director-General of MAN, Mr. Jide Mike, said it was stated explicitly in article 10.2 of the agreement that the price of gas would be benchmarked against the price of LPFO as determined and published by the Pipeline Product and Marketing Company (PPMC).

“Logically therefore, the price of gas can and will only change if the price of LPFO changes. To date, the price of LPFO has remained N25.40 per mscf and we have proof that the PPMC has not published or declared any increase in the price of LPFO,” Source: Thisday Newspaper