Total volume of liquified petroleum gas (LPG) popularly known as cooking gas supplied nationwide declined by 20.5 per cent to 85,265.8 metric tonnes in August 2021.
The Petroleum Products Pricing Regulatory Agency (PPPRA) in a report of LPG supplied in August 2021, signed by the agency’s executive secretary, Abdulkadir Saidu, indicated the volume of LPG supplied in August declined by 21,959.7 MT compared to the 107,224.584 MT supplied in the month of July.
Additionally, the level of supply in August was still lower than the 102,787.234MT which was also supplied in the month of June, an indication that the scarcity of cooking gas in the country is set to continue as long as supply remains low.
The report also showed that Nigeria is still importing the bulk of its LPG as 47,224.3MT, representing 55.4 per cent imported while 38,040.45MT was sourced locally.
A breakdown of the supply report shows that 38,040.457 MT was sourced locally by Ever Oil, Stockgap, NIPCO, 11 plc, Greenville Natural Gas, PNG Gas Ltd, NPDC and Ashtavinayak Hydrocarbon Ltd, while 47,224.346 MT was imported by NIPCO, Matrix, Algasco, Techno Oil, Prudent, A.A Rano, Stockgap.
Additional analysis of the data on importation in the month of August, shows that 21,606.301 MT was imported from the United States of America, while 13,044.266 was imported from Algeria and 12,573.779 MT was brought into the country from Equatorial Guinea.
On the other hand, out of the 38,040.457 MT sourced locally, 7,042.058 MT was sourced by Ever oil, 9,429.761 MT by Stockgap, 7,687.112 MT by NIPCO, 4,761.626 MT by 11 plc and 440.380 MT by Greenville Rumuji, Rivers State.
Also, PNG Gas Ltd in Ebedei, Delta State, supplied 651.490 MT into the market, while NPDC, Oredo, Edo State provided 1,055.310 MT and Ashtavinayak Hydrocarbon Ltd Kwale, Delta State, discharged 6,972.720MT.
Similarly, 11,262.04MT of propane was sourced locally and supplied into the energy market by NPDC and Ashtavinayak Hydrocarbon.
Recall that since the declaration of the “Decade of Gas”, by president Muhammadu Buhari, and the minister of state for petroleum resources, Chief Timipre Sylva, the nation has witnessed a significant increase in the volume of LPG produced locally. This, the PPPRA noted, is due to the commitment of the federal government in promoting gas penetration, to ensure a clean source of energy for cooking, power generation and transportation.
However, the imposition of Value Added Tax (VAT) on gas by the federal government, foreign exchange scarcity, high taxes and levies to gas marketers, among others, have influenced the current scarcity and hike in the price of LPG in the country, raising concerns that all the gains so far recorded for the DoG would be reversed as Nigerians seek cheaper but unhealthy sources of cooking energy.
It is expected that the Petroleum Industry Act (PIA) as the first law that recognises the oil and gas midstream sector will promote and protect gas-based investments and optimise the nation’s enormous gas potential while ensuring that Nigeria transits to become a net-zero emission nation.
The PPPRA reiterated its continued support for the federal government’s policy to deepen LPG penetration in the country and create a healthy life for Nigerians.