Cooking gas price rises further, as local production surges by 23%

Prices of Liquefied Petroleum Gas, LPG, also known as cooking gas across Nigeria continued on the upward trend, despite significant increase in local production of the product.

The product local production according to the Petroleum Products Pricing Regulatory Agency (PPPRA) report on LPG supplied in September 2021, released yesterday, increased to 49,453.081 Metric Tonnes, MT, in September 2021.

Vanguard gathered that the increase stood at 23 per cent when compared to 38,040.457MT recorded in August 2021.

A survey by our correspondent showed that 12.5 kilogram, kg, of cooking gas which was sold at N4,000 in January 2021, rose to N7,200 in August 2021.

Despite interventions by both the federal government and stakeholders in the country, the product rise further to N7,700 in September.

However, the PPPRA report showed that out of the 76,578.986MT of LPG supplied nationwide, 49,453.081MT was locally produced while 27,125.905MT was imported.

The report signed by PPPRA’s General Manager, Corporate Services, Kimchi Apollo, stated that, “In the month of September 2021, PPPRA LPG data show that 49,453.081MT was supplied into the domestic market by Algasco, Stockgap, NIPCO, 11 plc, Prudent, Greenville Natural Gas, PNG Gas, NPDC and Ashtavinayak Hydrocarbon Ltd with 66.58% of the supply sourced from the NLNG, whilst 27,125.905 MT was imported by Rainoil, Algasco and Prudent.

ALSO READ: Drugs distribution: PCN disciplinary panel begins trial of 3 pharmacists

“It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT.

“The marked improvement in local production reflects the success of His Excellency, President Muhammadu Buhari, GCFR and the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva in providing the right enabling business climate for the Gas industry to thrive.

“Government policies and programmes such as the National Gas Policy (NGP), Nigeria Gas Flarek Commercialisation Programme (NGFCP), National Gas Expansion Programme (NGEP) and the Decade of Gas declaration are responsible for the quantum of investments we see today in the gas industry.

“Some of these investments include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.

“In terms of policies, the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG have indeed heightened the prospects of domestic investment in the sector.

“In addition, a Pioneer Status Incentive for some categories of LPG Investments was also introduced. The PPPRA remains committed to the development of Nigeria’s vast gas resources and strengthening the entire value chain.”

Vanguard News Nigeria

Author: Pascal