Reasons have emerged for the current downward trend for the price of Liquefied Petroleum Gas, popularly called cooking gas.
Recall that the price of cooking gas has remained around N1, 500 per kilogram for more than four months now.
But according to the product marketers, the Federal Government’s ban on the export of the commodity has forced the price to clash around N900/kg.
The Nigerian Association of Liquefied Petroleum Gas Marketers disclosed this during a courtesy visit on the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja on Wednesday.
Recall that on February 22, 2024, the Federal Government banned the exportation of LPG. That was in a bid to increase its volume domestically, and as a result, a crash in price.
The FG had stated at the time that LPG producers in Nigeria and key stakeholders in the industry had been told to stop exporting the commodity out of Nigeria. That was following the jump in the cost of cooking gas.
Speaking at the meeting on Wednesday in Abuja, the National President, NALPGAM, Oladapo Olatunbosun, commended Ekpo.
He praised the Minister for the courage in ordering the domestication of all LPG produced within the country.
Olatunbosun, pointed that the policy has resulted in the reduction and stabilization of price of gas in the domestic market.
The NALPGAM President in a statement issued by the Minister’s Media Aide, Louis Ibah, recalled that during a stakeholder’s consultative forum in Abuja in February this year, the association had drawn the Minister’s attention to the fact that some international oil companies operating in Nigeria had been exporting huge volumes of gas.
Olatunbosun pointed out that if these volumes were to be available for the domestic market, there would be no need to import LPG at exorbitant rates. He maintained that the product would be available and there would be price stability in the local market.
The NALPGAM President, therefore, thanked the Federal Government for heeding to their plea. He stated that the Government’s intervention has brought down the price of LPG. The product which was sold for N20m per 20 metric tonnes has reduced to N15m.
He noted that at the retail end, there is a corresponding decrease. The price has dropped from N1,400 – N1,500 per kilogram to between N900 – N1,000 per kilogram.
“We appreciate the fact that at the parley with us, you (Ekpo) 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 hike are coming back. And we are confident that by the time the Naira gains more weight, consumers will enjoy better price of LPG,” Olatunbosun said.
Responding to the NALPGAM, the Minister decried the situation where Nigeria, a major gas producer, was ranked among countries with the lowest consumers of the product.
The Minister, therefore, assured of President Bola Tinubu’s commitment in deepening the penetration of gas across the country.
He lauded the marketers for their cooperation in bringing down prices to reflect current realities. Which is coming as a result of the ban on the export of LPG by the Federal Government.
He said, “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. And at the right price for the public in line with President Bola Tinubu’s aspiration for the sector and economy.”
Recall that the Minister had in February stated that FG had asked LPG producers to halt the export of the commodity.
source: PUNCH
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