In a bid to curb the soaring prices of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, Minister Takes Swift Action with proposing recommendations to enhance supplies and bring down LPG prices within a week.
The high-level meeting, convened at NNPC Towers in Abuja, saw the participation of top officials from Chevron Nigeria Limited, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), and the NNPCL, with the NMDPRA ACE/CEO appointed to lead the committee.
Over the past three months, Nigerians have grappled with a surge in cooking gas prices, forcing many to resort to alternative, less efficient fuels like firewood. This shift has hampered efforts to increase cooking gas usage nationwide.
Marketers in the LPG value chain have accused importers of unjustified price hikes, adversely affecting the economically disadvantaged citizens relying on gas for various purposes.
The Minister Takes Swift Action intervention comes amidst a significant rise in LPG prices, reaching over N900 per kg in some regions and exceeding N12,500 for a 12kg gas cylinder. Challenges such as foreign exchange constraints for imports and inadequate supply to the domestic market by producers have contributed to the price surge.
Minister Ekpo expressed President Bola Tinubu’s concerns regarding the price escalation and the resulting hardships faced by citizens. He criticized multinational firms for prioritizing gas exports over domestic supply and stressed the need for collaboration to ensure sufficient gas supply and stability within the country.
Managing Director of NIPCO Plc, Mr. Suresh Kumar, highlighted the disparity in cooking gas access between urban and rural areas, revealing that only 10% of those in rural regions have access to cooking gas. To address this imbalance, NIPCO plans to deploy 50 skid plants to rural communities within the next two years, aiming to improve penetration and reverse the declining consumption figures in these areas.
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