The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has stepped in to address the persistent price increases of Liquefied Petroleum Gas (LPG) in the domestic market.
The intervention comes in response to the recent surge in the price of LPG per kilogram, soaring from approximately N700 to over N900 in various parts of the country.
“With the exponential increase in the price of LPG, there is the need for the Federal Government to intervene and I am that representative at this moment,” Ekpo expressed.
Following a stakeholders meeting, a statement released by Louis Ibah, the minister’s spokesperson, revealed that Ekpo tasked a committee, led by Farouk Ahmed, the Chief Executive Officer of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), to propose a solution within one week.
The meeting was attended by senior officials from Chevron Nigeria Limited, led by Sansay Narasimha, as well as representatives from NMDPRA and NNPC Ltd.
Ekpo instructed the committee to devise a strategy to enhance supplies and reduce LPG prices. He highlighted the primary challenges contributing to the price hike as FX sourcing for imports and inadequate supply to the domestic market by producers.
He also conveyed President Bola Tinubu’s concerns regarding the substantial rise in the price of cooking gas and the resulting hardship faced by the majority of citizens.
The minister emphasized that the escalation in prices was particularly evident where some multinational firms prioritized gas exports over allocating substantial volumes for the domestic market, which he deemed unacceptable given the country’s abundant gas reserves.
“We acknowledge that some producers are exporting while we are faced with the challenges of importation. Public interest is the overriding interest all over the world for the government, and the demand for LPG will increase as we approach December,” Ekpo addressed the stakeholders.
“You have a public service obligation to collaborate with the government to ensure security of gas supply. We need to, therefore, bend backwards and find solutions to ensure that we have sufficient supply and stability in-country and that Nigerians have gas,” Mr. Ekpo emphasized.
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