Price of gas hoping to reduce

The federal government forms a committee to address high cooking gas prices within a week and tackle supply challenges
Minister Ekperikpe Ekpo intervenes in issues surrounding LPG pricing, citing challenges like foreign exchange sourcing and inadequate domestic supply
The federal government has shown concern over the high cost of cooking gas and has formed a committee tasked with reducing the price within a week and addressing supply challenges. The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has intervened in the issues surrounding the supply and pricing of liquefied petroleum gas (LPG), commonly known as cooking gas, in the domestic market.

The newly formed committee, tasked with reducing cooking gas prices within a week, reflects the government’s commitment to ensuring affordable and accessible energy sources for households across the country. The mandate of the committee goes beyond price regulation; it also aims to tackle supply challenges, recognizing the intricate web of factors influencing the LPG market.

Minister Ekperikpe Ekpo’s intervention in the issues surrounding LPG pricing demonstrates a proactive approach to addressing the concerns of consumers and stakeholders alike. He has identified key challenges, including foreign exchange sourcing and inadequate domestic supply, as major contributors to the surge in cooking gas prices. By actively engaging with these issues, the minister aims to bring about lasting changes that will benefit consumers and stimulate the growth of the LPG sector.

One of the primary obstacles contributing to the high cost of cooking gas is the challenge of foreign exchange sourcing. The LPG market is heavily influenced by global factors, and fluctuations in foreign exchange rates can have a direct impact on the pricing of imported gas. Minister Ekpo’s intervention signals a commitment to exploring strategies to mitigate these challenges, fostering a more stable and predictable pricing environment for consumers.

The intervention comes in response to the recent increase in the price of LPG per kilogram, rising from about N700 to over N900 in some regions and even exceeding N1200 per kilogram in certain states.

Key challenges identified as contributing to the surge in LPG prices include difficulties in sourcing foreign exchange for imports and inadequate supply to the domestic market by producers.

During a meeting held at the NNPC Towers in Abuja, attended by top officials from Chevron Nigeria Limited, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), and the NNPCL, the minister emphasized that Nigeria possesses abundant gas reserves. He expressed dissatisfaction with multinational firms prioritizing gas exports over dedicating substantial volumes to the domestic market.

In response, the gas minister constituted a committee led by the CEO of NMDPRA with a mandate to provide recommendations on boosting supplies and lowering LPG prices within a week.