In an Abuja workshop on Thursday, the Minister of State for Petroleum Resources announced that until local demands are met, there will be no export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
The government aims to enhance supply to domestic markets amidst escalating gas prices. Despite initiatives such as declaring the decade of gas and promoting gas as a transition fuel, Nigerians are increasingly deterred from utilizing LPG due to low production and rising costs.
To address the issue, the Federal Government has opted to intervene by withdrawing taxes and levies on gas importation and related equipment. According to EKPO, this move serves as a significant incentive towards addressing the LPG pricing concerns.
However, questions persist regarding why the removal of taxes has not translated into lower prices. EKPO clarified that while the policy aims to mitigate costs, investors seek to maximize profits, necessitating regulatory oversight to ensure price reductions.
Efforts are underway to engage stakeholders and prevent LPG exportation, thus prioritizing domestic consumption. Collaborations with regulatory bodies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as well as major gas producers such as Mobil, Chevron, and Shell, offer hope for a turnaround in the situation. Meetings between stakeholders occur regularly to strategize on ways to increase domestic LPG production and stabilize prices.
The Government intervention to address rising gas prices and promote domestic supply, alongside the announcement of halting LPG exportation until local demands are met directly, impacts the average Nigerian by potentially making less severe the financial stress caused by escalating cooking gas costs. Despite initiatives to promote gas usage, low production and increasing prices have stopped many from relying on LPG. The withdrawal of taxes on gas importation aims to encourage price reductions, but challenges persist due to profit-driven investor behavior. Nevertheless, collaborative efforts with regulatory bodies and major gas producers offer hope for stabilizing prices and increasing domestic production, promising potential relief for Nigerian households struggling with the burden of soaring energy expenses.
