Rédaction Africa Links 24 with Ibrahim Ramalan
Published on 2024-02-22 18:20:17
The Federal Government is taking steps to address the rising cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by working with critical sectors to halt its exportation. The Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, revealed this during the Opening of the Internal Stakeholders’ Workshop in Abuja.
This decision is aimed at ensuring that all LPG produced within the country will be domesticated, which should ultimately lead to a reduction in the price of gas. Ekpo emphasized the importance of increasing the volume of domestically produced LPG in the country in order to bring down the price.
The Minister stated that he is in continuous communication with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and major LPG producers such as Chevron, Mobile, and Shell. These interactions are geared towards finding solutions to the rising cost of LPG and boosting domestic production.
In addition, Ekpo highlighted the government’s efforts to promote the conversion of vehicles to Compressed Natural Gas (CNG) as a means to offset the impact of fuel subsidy removal. He is also engaging with the Presidential Initiative on CNG to advance this goal.
Furthermore, he mentioned the withdrawal of taxes and levies from the importation of gas-related equipment as a significant incentive for investors. However, he acknowledged the need for regulators to ensure that these benefits translate into a reduction in the price of gas.
The workshop also featured a presentation by Oluremi Komolafe, Director Gas of the Ministry, who shared insights from the Minister’s consultation with operators in the gas sector. According to Komolafe, the operators called for balanced gas pricing to ensure sustainable sectoral growth while considering the impact on the average consumer.
She also highlighted concerns raised by LPG retailers about the soaring price of cooking gas, which has become unaffordable and is driving consumers towards cheaper alternatives such as charcoal. The retailers also emphasized the need for policies to address the issue of substandard gas cylinders, highlighting it as a significant challenge in the sector.
It was noted that the price of cooking gas had increased to N1,400 per kg in January 2024, up from N950, which further emphasizes the urgency of these discussions.
Overall, the government’s efforts, including the internal stakeholders’ workshop and ongoing engagements with industry players, reflect a commitment to addressing the challenges faced by the LPG sector. By focusing on domestication of LPG production and addressing pricing concerns, the government aims to ensure that the average consumer can afford clean cooking energy, ultimately contributing to economic growth and development.
In conclusion, it is evident that the government is prioritizing the stabilization of the LPG market to make gas more accessible and affordable to the populace. The consultations and workshops serve as important platforms for industry stakeholders to collaborate with the government in finding sustainable solutions to the challenges facing the LPG sector.
Read the original article on DailyNigerian.com
