Federal Government Initiates Action to Slash Cooking Gas Prices, Targeting Reduction from N1,100 per kg

The Federal Government is taking proactive measures to address the escalating price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas. Initiated by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, this intervention aims to tackle challenges related to the supply and pricing of LPG in the country.

Ekpo’s involvement was prompted by the surge in the price of LPG per kilogram from around N700 to over N1,100 in certain regions. The minister convened a crucial meeting at the NNPC Towers in Abuja, bringing together key officials from Chevron Nigeria Limited, led by Sansay Narasimi, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), led by CEO Farouk Ahmed, and the Nigerian National Petroleum Corporation Limited.

Various issues contributing to the increase in LPG prices were identified during the meeting, including difficulties in sourcing forex for imports and inadequate supply to the domestic market by producers. President Bola Tinubu’s concerns about the substantial hike in cooking gas prices and its adverse impact on the majority of citizens were emphasized by Ekpo.

Despite Nigeria’s abundant gas reserves, the minister criticized multinational firms for prioritizing gas exports over dedicating substantial volumes to the domestic market. He deemed this practice unacceptable and called for Federal Government intervention, considering the significant rise in LPG prices and the challenges associated with importation and exportation.

To address these concerns, the minister established a committee tasked with delivering recommendations within a week on how to enhance supplies and reduce LPG prices. Ekpo underscored the urgency of government intervention in light of the substantial increase in LPG prices.

In a related development, cooking gas marketers, represented by the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), previously accused LPG terminal operators of contributing to the high cost of cooking gas in the country. The president of NALPGAM, Oladapo Olatubosun, alleged that terminal operators obtained the product at a lower cost of N9 million for 20 metric tons from the Nigeria LPG plant but sold it to marketers at a higher rate of N16.8 million per 20 metric tons.

As the government takes decisive steps to address these challenges, stakeholders in the LPG industry, including terminal operators and marketers, will be closely monitored for compliance with proposed recommendations aimed at stabilizing the supply and pricing of cooking gas in Nigeria. InfoStride News will continue to provide updates on this crucial matter as developments unfold.