Hopes of Nigerians for a reduction in the high prices of domestic cooking gas has been rekindled following the revelation by the Nigerian National Petroluem Company to increase supply of the products to the domestic market.
The Group Managing Director of the NNPC Ltd, Mr Mele Kyari, disclosed this in Abuja while speaking with reporters shortly after inaugurating Emadeb Energy Services Limited’s 120MT LPG Storage and Bottling Plant.
The increase in the prices of Liquefied Petroleum Gas (LPG) otherwise known as cooking gas has brought pains and hardship to Nigerians who relied on the product for preparation of their meals.
Many Nigerians had expressed concern that with the yuletide fast approaching, it may be difficult for them to enjoy the festivities with the price of gas far going beyond their means.
Residents of Abuja, Lagos and Port Harcourt among others currently pay between N8,500 and N9,500 to refill their 12kg gas cylinders. The price as of the beginning of this year was between N3,500 and N4,500.
But the disclosure by the NNPC GMD of a reduction in price through an increase in supply of the products is expected to put smiles on the faces of Nigerians as they prepare for the Christmas and New Year celebrations.
Speaking on the development, Kyari explained that the rise in the price of cooking gas was a reflection of the rising price of crude oil and its derivatives at the international market.
The price of crude oil as of Monday was put at $72.68 per barrel.
The NNPC GMD expressed optimism that the newly-inaugurated LPG plant would reduce the cost of energy for Nigerians.
He said, “The price would soon crash once the NNPC raises its supply of the product. Two things are at play; one is the supply and the other is the international price of gas.
“It (price) moves with the price of every other petroleum product including crude oil and its derivatives. So it is a reflection of what is happening in the international market.
“What we are doing is to increase supply. Once supply is increased the prices will come down.”
Before the passage of the PIA which overhauled the country’s rich oil and gas industry, President Muhammadu Buhari had in March declared 2021 to 2030 the ‘decade of gas.’ The energy source is seen as cleaner than fossil fuel
Kyari said one of the many ways investors could key into the decade of gas initiative was to have facilities such as this for auto-gas conversion, and also to ensure that LPG is easily accessible by the people.
He expressed optimism about the company’s plan to, within the next 12 to 18 months, build a similar plant in six different locations countrywide.