By Chibisi Ohakah, Abuja
Nigeria authorities have attributed the current high price of Liquefied Petroleum Gas (LPG) in the country to the rising price of crude oil and its derivatives in the global market at the world market.
Speaking during at the inauguration of a 120MT LPG private storage and bottling plant in Abuja, the managing director of the Nigerian National Petroleum Company (NNPC), Mallam Mele Kyari, assured the Nigeria’s national oil company was working round the clock to boost the supply of LPG to ensure a crash of the current prices.
“Two things are at play; one is the supply and the other is the international price of gas. It (price) moves with the price of every other petroleum product including crude oil and its derivatives. So it is a reflection of what is happening in the international market. What we are doing is to increase supply. Once supply is increased the prices will come down,” the NNPC boss stated.
He said the newly-inaugurated LPG plant would “reduce the cost of energy for Nigerians for the fact that LPG is cheaper than any other product you can think of, especially as cooking fuel.”
He said that establishment of LPG plants as projects aligned with one of the steps the current Nigerian administration had taken to provide gas for its citizenry.
“We are aware that a lot of institutions and companies are doing this across the country. We are selecting this in line with Mr. President’s objectives to make this the decade of gas,” Kyari said.
He also stated that one of the many ways investors could key into the decade of the gas initiative was to have facilities like this for auto-gas conversion, and also to ensure that LPG is easily accessible to people.
He noted that the global energy transition had made the investment climate very ripe for gas, and assured those investing in the LPG project that the NNPC would support them with guarantee supply of gas.
“We know that the investment climate is very ripe for auto-gas and auto fuel, especially in terms of LPG as a transition fuel globally. So, we know that this is a big market for Nigerian companies and this is one of the great companies that we have around.
“As NNPC, we will come in and we will guarantee supply. That is very important for us as a business. As you are aware, we are NNPC Limited in Nigeria and we also have to make money for Nigeria. We will be there in the upstream to provide the gas,” Kyari stated.
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