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NNPC Unveils Strategy to Crash Cooking Gas Price

By Modupe Gbadeyanka

The Nigerian National Petroleum Corporation (NNPC) has expressed its desire to implement effective commercial framework that would halt the export of propane and butane which are major components in the production of Liquefied Petroleum Gas (LPG), also known as cooking gas.

In a press statement, state-owned oil agency said the move to stop the export of propane and butane which was anchored by its Crude Oil Marketing Division and will enable it boost supply of LPG to the domestic market, thereby leading to a natural downward slide in the price of the product in the country. 

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In the statement signed by Group General Manager, Group Public Affairs Division, Mr Ndu Ughamadu, the Group General Manager, Crude Oil Marketing Division (COMD) of NNPC, Mr Mele Kyari, was quoted as saying: “Currently some of our butane and propane entitlements are exported largely due to lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework. What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption”. 

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Mr Kyari who disclosed this at a strategy session said the division was working in concert with stakeholders to create the enabling environment for in-country production of LPG and cessation of export of the country’s equity butane and propane entitlements due to absence of in-country vessels for transport and other considerations.

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The COMD GGM said that the goal of the division in 2019 is to complete the automation process in the marketing and sale of Nigerian crude oil grades which teed-off in 2017, noting that all hands must be on deck to achieve 100 percent, end-to-end conclusion of the process.

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Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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