Expert suggests ways to reduce cost of cooking gas

An energy expert, Mrs. Nkechi Obi, has said the price of liquefied petroleum gas (LPG), also known as cooking gas, could only drop if the naira appreciated because its pricing was relative to forex volatility.

Obi, who is the Group Managing Director and Chief Executive Officer of Techno Oil Group, stated this in an interview with the newsmen on Sunday.

She said that the government ought to get producers such as Shell, Chevron, and Total Energies to allocate some of their products to meet the local demand from the LPG.

“The price of LPG can only drop if the naira appreciates. Nigeria Liquefied Natural Gas Limited. (NLNG) is the only local supplier to the domestic market today.

“The demand for LPG for domestic use has increased. The NLNG cannot meet 100 percent of local demand.

“They are able to meet 50 per cent. The other LPG in the market is import, and its pricing is relative to foreign exchange volatility,’’ she said.

Supreme News reports that the Federal Government recently said it was interacting with the critical sectors to halt the exportation of LPG as part of measures to cut its rising cost.

The Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, said that all the LPG produced in the country would be domesticated to crash its prices.

Reacting to this, Obi said that the order might be difficult to achieve because the International Oil Companies (IOCs) might have had agreements /clauses entered into with the Federal Government that may be almost impossible for them to change.

“It’s a tall order because the IOC may have had agreements or clauses entered into with the government that may almost be impossible for them to change,” she said.

Supreme News checks showed that a kilogramme of cooking gas was sold at N1,400 as against N950 in January.