All indications are pointing to further increase in the price of Liquefied Petroleum Gas (LPG), also known as cooking gas as supply dips by 5.5 per cent to 85,066.546 metric tonnes, MT, in September, from 90,017.002 MT recorded in August 2021.
Investigations shows that the price of 12.5 kg currently stands at N8,500 but could rise further to between N9,000 and N10,000 during the yuletide period that usually record increased demand.
The price of the cooking gas stands at N8, 000, N4,600 and N4,000 for 10kg, 5kg and 3kg respectively.
According to the latest LPG report for September 2021 released weekend, the Petroleum Products Pricing Regulatory Agency (PPPRA) now known as the Nigeria Midstream and Downstream Petroleum Regulatory Agency, stated that, of the 85,066.546 MT supplied, 51,847.085 MT were sourced locally, representing 60.95 per cent, while 33,219.461 MT, representing 39.05 per cent were imported.
Also, it disclosed that a bulk of the domestic supply was sourced from the Nigeria Liquefied Natural Gas (NLNG) while the imports came mainly from the United States, Algeria and Equatorial Guinea.
The President, Nigeria LPG Association, Nuhu Yakubu, while reacting to the limited supply of LPG, noted that the sector was still constrained by some problems, especially foreign exchange, high prices and instability.
He said the association has been engaging with relevant agencies with a view to addressing the issues.
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Speaking at the just-concluded 11th International Conference and Exhibition in Lagos, Yakubu said, “As an association, we are currently engaging with respective government agencies in addressing issues around LPG supply, particularly access to foreign exchange, value-added tax, levies, etc. We believe our efforts will yield positive results in good time.
“Also, it is not far-fetched to state, therefore, that sustaining the growing adoption of LPG through sector-friendly policies and programs will inadvertently support economic growth that will yield jobs and wealth creation. It is our collective responsibility to make this happen and an event such as this is one aimed at setting the pace.
“In line with the 7th Sustainable Development Goals (SDGs), deepening education on the role of diverse applicable uses of LPG is critical as the world aims to provide cleaner, reliable, sustainable and affordable energy sources for everyone by 2030. Worthy of mention is the declaration of the Decade of Gas, by the Honorable Minister of State for Petroleum Resources, Chief Timipre Sylva with the support of the President and Commander in Chief, Retired Gen. Muhammadu Buhari, GCON, who ably doubles as Minister of Petroleum Resources.
“The LPG sector is projected as an industry with this executive posturing to galvanize the entire LPG value chain to drive an upsurge adoption of LPG in spurring growth and improving the well being of households across Nigeria.”
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