The Minister of State for Petroleum (Gas), Obongemem Ekpo has raised the hope of possible crash in the price of the Liquefied Petroleum Gas (LPG), otherwise known as cooking gas to affordable rate, in Nigeria.
Ekpo blamed the current high price of the product on exportation of the commodity outside the country.
The Minister gave the assurance at a forum with elders, stakeholders and youths in Abak Local Government Area of Akwa Ibom State.
He disclosed that modalities have already been worked out by the Federal Government to crash the price to a more acceptable rate.
While highlighting steps taken by his ministry to reduce gas cost and make the product more available, particularly to power generating companies, the former lawmaker noted that the Federal Government plans to end high cost of the product by increasing its in-country circulation.
“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 said with this in place, and as the ministry works round the clock towards establishing a standard price regime of cooking gas at minimal and affordable, cost to the local consumers will reduce.
Ekpo 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.”
