The State Minister for Petroleum Resources with a focus on Gas, Honorable Ekperikpe Ekpo, has announced that the export of Liquefied Petroleum Gas (also known as cooking gas) will be halted until the nation’s needs are fully satisfied.
During a workshop held in Abuja on Thursday, the Minister revealed the government’s commitment to enhancing the domestic gas supply.
This government action is in response to the recent surge in cooking gas prices, which saw an increase of more than 20 percent this week, soaring from N1,030 per kilogram to N1,240/kg.
In spite of the government’s proclamation of a ‘decade of gas’ and efforts to position gas as a bridge fuel during the transition to cleaner energy sources, the combination of low production and escalating prices has been deterring Nigerians from adopting LPG.
Ekpo elaborated: “The federal government has shown its commitment through the elimination of all taxes and charges on the importation of gas-related equipment, offering significant incentives towards resolving the LPG issue.
“We are actively engaging with key industry players to ensure that LPG exports are stopped. We intend to keep all domestically produced LPG within the country, which should lead to an increase in supply and naturally, a reduction in price. I am in constant communication with the regulator, NMDPRA (Nigerian Midstream and Downstream Petroleum Regulatory Authority), and gas producers like Mobil, Chevron, and Shell. We are optimistic about seeing positive changes.
When asked about the tax removal not leading to price reductions, he explained: “Immediate price drops cannot be expected. We’re dealing with human behavior and market dynamics here. The policy is set, but investors are looking to maximize returns. This necessitates intervention from our end, which is why the regulator is in constant dialogue with stakeholders to ensure prices are brought down,” he further stated.
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