Business and Economy
FG Wades into Cooking Gas Price Hike
By Iyojo Ameh
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has stepped in to address the ongoing challenges stemming from the constant price increment of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in Nigeria’s domestic market.
The intervention comes as the price of LPG per kg surged from about N700 to over N900 in various parts of the country in recent months, prompting concerns among consumers.
“At this moment, with the exponential increase in the price of LPG, there is a critical need for the Federal Government’s intervention, and I am representing that intervention,” stated Ekpo.
In a statement released by the minister’s spokesperson, Louis Ibah, after a stakeholders meeting, Ekpo directed the formation of a committee led by Farouk Ahmed, CEO of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), tasked with finding a solution within one week.
The meeting saw the participation of key officials from Chevron Nigeria Limited, led by Sansay Narasimha, as well as representatives from NMDPRA and NNPC Ltd.
Ekpo highlighted the committee’s mandate to propose effective measures to enhance supplies and reduce LPG prices. Among the challenges identified were FX sourcing for imports and inadequate domestic market supply by producers.
Expressing the concerns of President Bola Tinubu over the soaring LPG prices and the resulting hardship faced by citizens, Ekpo emphasized the necessity to discourage multinational firms from prioritizing gas exports over meeting domestic demand despite the country’s substantial gas reserves.
“We acknowledge that some producers are exporting while we are faced with the challenges of importation,” stated Ekpo, emphasizing the paramount importance of public interest and collaboration between the government and gas producers to ensure adequate supply and stability within Nigeria.
“As we approach December, the demand for LPG will increase. We must collaborate to ensure security of gas supply and work towards solutions to meet the needs of Nigerians,” Ekpo emphasized.
