Federal Govt Moves To Crash Price Of Cooking Gas
Posted on November 27, 2023
The high price of cooking gas may be a thing of the past if the Federal Government implements its plans to resolve the challenges bordering on the supply and pricing of Liquefied Petroleum Gas (LPSG) in Nigeria’s Domestic Market better known as cooking gas.
P.M.EXPRESS reports that the real cause of high price of cooking gas is the exportation in disregard for domestic use caused by foreigners who produce the gas in Nigeria.
This was disclosed by the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, who said he waded into the issue following a rise in the price of LPG per kg from about N700 to above N1,100 in some parts of the country.
According to the statement issued by the Minister’s spokesperson, Louis Ibah, he said the Minister made the disclosure at a meeting convened at the NNPC Towers in Abuja, attended by officials of Chevron Nigeria Limited, the Nigerian Midstream Downstream Petroleum Regulatory Authority, and the Nigerian National Petroleum Corporation Limited.
Key challenges highlighted at the meeting as responsible for LPG price increase included FX sourcing for imports and insufficient supply to the domestic market by producers, the rise in LPG prices FX sourcing for imports and inadequate supply to the domestic market by producers.
Ekpo conveyed President Bola Tinubu’s concerns over the significant price increase in cooking gas and its resulting hardships for the majority of citizens.
The Minister highlighted Nigeria’s abundant gas reserves and criticized multinational firms’ emphasis on gas exports without allocating significant volumes to the domestic market, deeming it unacceptable. He stressed the need for Federal Government intervention due to the exponential surge in LPG prices and the challenges of importation and exportation.
A committee was subsequently established by the Minister with a mandate to deliver recommendations within a week on how to enhance supplies and reduce LPG prices.