The Federal Government’s ban on the export of Liquefied Petroleum Gas, also known as cooking gas, has led to a crash in the price from about N1,500 per kilogram to around N900/kg, LPG dealers stated on Wednesday.
This was disclosed by dealers under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers during a courtesy visit on the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Wednesday, according to The Punch.
Commenting, the National President, NALPGAM, Oladapo Olatunbosun lauded the minister for having the guts to mandate that all LPG generated in the nation be domesticated, stating that this policy led to a decrease and stabilization of the product’s price on the domestic market.
Olatunbosun recalled that the association had alerted the minister to the fact that certain foreign oil corporations with operations in Nigeria were exporting substantial amounts of gas.
He stressed that if these quantities were available for the home market, there wouldn’t be a need to import LPG at astronomical prices because the product would be available and the local market’s prices would be stable.
He expressed gratitude to the Federal Government for listening to their request, which resulted in the price of LPG being lowered from N20 million to N15 million every 20 metric tonnes.
The NALPGAM president said, “We appreciate the fact that at the parley with us, you promised that the issue of exporting LPG in the face of inadequate supply and soar in prices will be addressed, and indeed you have taken steps to walk the talk.
“Today we say thank you because the ban on LPG export has made a lot of changes in the market and consumers can testify to this.
“People who abandoned their gas cylinders due to price hikes are coming back and we are confident that by the time the naira gains more weight, consumers will enjoy the better price of LPG.”
At the retail end, there is a corresponding decrease from N1,400 – N1,500 per kilogram to between N900 – N1,000 per kilogram, according to the gas marketer, as contained in the statement.
In his speech, Ekpo lamented the situation where Nigeria, a major gas producer, was ranked among the countries with the lowest consumers of the product.
He gave his visitors his word that President Bola Tinubu would work to increase gas penetration throughout the nation.
He stated “We would not have gone that far without your cooperation and support. We are working towards ensuring that our vast gas resources are available domestically at the right price for the public in line with President Bola Tinubu’s aspiration for the sector and economy.”
In February, the Minister of State for Petroleum Resources (Gas) declared that the government had requested that LPG producers stop exporting the product.
Ekpo had said, “With the issue of gas, you have seen the demonstration of the Federal Government by withdrawing all taxes and levies from the importation of gas-related equipment. It is a big incentive.
“On the issue of LPG (cooking gas), we are interacting with the critical sectors to ensure that there is no exportation of LPG. 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’m in contact with the regulator, NMDPRA, we have meetings almost daily with the producers of the gas like Mobil, Chevron, and Shell. So there is that hope that things will turn around.
“And that is also why we are having this engagement to know exactly what the problems are so that we can address them once and for all.”
