President Tinubu made a historic announcement regarding the elimination of petrol subsidies in May 2023. As a result of this trend, important parties such as the Nigerian Liquefied Petroleum Gas Association (NLPGA) began campaigning for more cost-effective alternatives to enable Nigerians to fuel their generators and automobiles. One common idea was to switch to Autogas/LPG, which presented a feasible and cost-effective alternative to petrol, the price of which had risen significantly.
This sparked a surge in demand for LPG, particularly for generators that could run on both fuel and LPG. It was emphasized that a shortfall in the manufacture of a highly sought-after commodity invariably leads to price increases.
According to him, the rise in LPG costs is due to two fundamental factors:
1. Inadequate domestic investment in natural gas exploration.
2. Significant decline in associated gas output, which is obtained from crude oil exploration, as a result of rampant crude oil theft.
Furthermore, it is discovered that a lack of investment in gas exploration, as well as the ubiquitous issue of crude oil theft, which has a direct influence on associated gas production, has forced the country to consider an alternate solution—importing LPG Liquefied Petroleum Gas.
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