The Minister of State for Petroleum (Gas), Obongemem Ekpo, has predicted that the price of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas, will soon crash in Nigeria.
This is as the Minister narrated various measures the federal government is putting in place to ensure the availability of the product at an affordable rate.
Speaking during a forum with elders, stakeholders and youths in Abak Local Government Area of Akwa Ibom State, Ekpo blamed the current high price of cooking gas in the country on the exportation of the product.
He, however, revealed that the government is working assiduously to crash the price of cooking gas and make it available locally for use and for the power generating companies.
The Minister stated that the government is working on the establishment of gas plants at various parts of the country and arrest the increasing price through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
He added that a meeting has been held with the International Oil Companies (IOCs), urging them to stop selling their gas (LPG) outside the country.
“This can be achieved through the establishment of gas plants at various parts of the country, which is what the Ministry is currently working on and advocating for.
“The reason for the current price hike is due to scarcity as a result of exportation. The high demand for it has also made the local dealers take advantage of the situation and sell at a higher rate.
“We are working seriously to arrest this situation through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is saddled with the responsibility of gas price fixing.
“Nigeria’s blending of LPG is 40:60 (propane and butane). But some companies produce and blend their gas to their specific blend like 50:50 or 30:70, which is not the blend that is needed here.
“So, recently, we convened a meeting with the International Oil Companies (IOCs), urging them to stop selling their gas (LPG) outside the country. We have moved a step further to look for a blending plant that would blend it to our specification,” Ekpo said.
He added that; “We have discussed how we can stop the export of gas by independent producers, and when we stop the export of gas, the price will come down.”
