LPG Price Reduction Gains Praise From NALPGAM

Click here to see our reaction to this blog post and press statement you are about to read. 

The Nigerian Association of Liquefied Petroleum Gas (LPG) Marketers has applauded the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, for his decisive action in ordering the domestication of all LPG produced within the country. This policy has led to a significant reduction and stabilization of LPG prices in the domestic market.

During a recent courtesy visit to the Minister in Abuja, the National President of the association, Mr. Oladapo Olatunbosun, expressed gratitude for Ekpo's bold decision. He recalled that at a stakeholders' consultative forum in Abuja earlier this year, the association had highlighted the issue of International Oil Companies (IOCs) exporting large volumes of gas out of the country. They argued that if these volumes were retained domestically, it would negate the need for expensive imports and stabilize local prices.

Olatunbosun thanked Ekpo for acting on their concerns, noting that the intervention has led to a price drop from N20 million to N15 million per 20 metric tonnes of LPG. At the retail level, prices have decreased from N1,400 - N1,500 per kilogramme to between N900 - N1,000 per kilogramme.

"We appreciate the fact that you promised to address the export issue during our parley and have indeed followed through," Olatunbosun said. "The ban on LPG exports has significantly impacted the market, and consumers who previously abandoned their gas cylinders due to price hikes are returning. We are confident that as the Naira strengthens, consumers will benefit from even better LPG prices."

In response, the Gas Minister lamented Nigeria's low domestic gas consumption despite being a major producer. He assured the marketers of President Bola Tinubu's commitment to increasing gas penetration in the country. Ekpo praised the marketers for their cooperation, which has been crucial in reducing prices following the export ban.

"We are dedicated to ensuring that our vast gas resources are available domestically at affordable prices, in line with President Bola Tinubu's vision for the sector and the economy," he added.

Signed, 

Louis Ibah Spokesman for the Minister of State for Petroleum Resources (Gas)

June 5, 2024.

LPG in Nigeria has another blog post that discusses this press statement and its many implications for the Nigerian  LPG market.

Click here to read it. 

• Lpg
• cooking gas
• nalpgam
• stakeholders

Oluwabukola Jimoh

Oluwabukola Jimoh is a dynamic academic writer and captivating energy blogger. She is able to delve into intricate subjects with an insatiable thirst for knowledge, crafting thought-provoking essays that engage and enlighten her readers.