Nigeria Moves to Crash Cooking Gas Price

February 23, 2024
cooking gas

 By Adedapo Adesanya

Nigeria is considering taking a major step aimed at crashing the price of Liquefied Petroleum Gas (LPG), also known as cooking gas, to ease the sufferings of its citizens.

The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, speaking at the opening of its Internal Stakeholders’ Workshop on Thursday in Abuja, disclosed that the government would most likely ban the exportation of the commodity to keep the price lower than its current level.

Currently, prices range between N1,300 per kg to N1,400 per kg.

“All LPG produced within the country will have to be domesticated and when this is done, the volume will increase and of course, the price will automatically crash.

“I am in contact with the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the producers of LPG such as Chevron, Mobile and Shell, we have meetings on a daily basis.

“There is hope that things will turn around, we do not need to make noise about it and it is based on this that we have this engagement to find out the problems and address them once and for all,” Mr Ekpo said.

On conversion of vehicles to Compressed Natural Gas (CNG), to cushion the effect of fuel subsidy removal, Mr Ekpo said he has been interfacing with the Presidential Initiative on CNG towards realising the goal.

“The moment I get a clearer picture about it, I will address you accordingly,’’ the Minister stated, adding that the impact on withdrawal of taxes and levies from gas-related equipment would not reflect that way because the investors are humans and would like to maximise profit, though the policy has been put in place.

“But at the end of the day the regulators have to come in and interface with them to ensure they crash the price,’’ he said.

According to him, the demonstration by the federal government by withdrawing all taxes and levies from the importation of gas-related equipment is a big incentive.

The workshop also featured a presentation by Mrs Oluremi Komolafe, Director of Gas of the ministry on highlights from the minister’s consultation with the operators in the nation’s gas sector on February 6.

Speaking on the recommendations by the operators, she said they called for balancing gas pricing while considering the impact on the average consumer is imperative for sustainable sectoral growth.

Mrs Komolafe said the LPG retailers urged the Minister to look into the issue of the soaring price of cooking gas as it had become relatively unaffordable to the common man.

She said the retailers highlighted that the surge in price was capable of jeopardising the clean cooking initiative and made the use of charcoal an attractive and cheaper alternative.

“They also mentioned the issue of substandard gas cylinders as a great challenge and called on the Ministry to look into the issue and enact a national cylinder and accessories policy to curb it,’’ she said.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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