In response to the escalating cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, the Federal Government announces plans to cease its exportation and focus on domestic production to stabilize prices.
Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, revealed this during the Internal Stakeholders’ Workshop in Abuja, emphasizing collaboration with key stakeholders to achieve this objective.
The workshop, themed “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development,” aims to revitalize the nation’s gas sector across its value chain.
Ekpo assured stakeholders of ongoing dialogues with regulators and LPG producers such as Chevron, Mobil, and Shell to increase domestic production, thereby lowering prices.
Additionally, the government explores converting vehicles to Compressed Natural Gas (CNG) to mitigate the impact of fuel subsidy removal.
However, Ekpo indicates the need for further consultation with relevant bodies before implementing this initiative.
While acknowledging concerns about the withdrawal of taxes and levies on gas-related equipment, Ekpo emphasizes the government’s commitment to ensuring price reduction through regulatory intervention.
A presentation by Mrs. Oluremi Komolafe, Director of Gas at the Ministry, highlights stakeholders’ recommendations, including the need to balance gas pricing to safeguard consumer interests and sustain sectoral growth.
Komolafe underscores concerns raised by LPG retailers regarding the soaring prices, urging government intervention to prevent a shift to cheaper alternatives like charcoal due to affordability issues.
With cooking gas prices reaching N1,400 per kg in January 2024, the government’s proactive measures aim to address these challenges and foster a conducive environment for the clean cooking initiative.