The federal government has blamed the rising prices of cooking gas, also known as Liquefied Petroleum Gas (LPG), on market pressures from foreign exchange volatility and rising logistics costs.
In a statement, the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, expressed the government’s concerns about the pain caused by rising cooking gas prices, announcing moves to ensure adequate, reliable and affordable gas for households, industry and power generation.
To remedy the situation, the FG said it has ordered the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to engage with cooking gas producers, marketers and other stakeholders to sustain supply and enhance market stability of the product.
“The recent price adjustments are driven largely by prevailing market realities such as foreign exchange volatility, rising logistics costs, infrastructure constraints and fluctuations in international LPG prices. These factors should not be misinterpreted as evidence of policy failure,” he stated.
According to him, the government’s commitment is reflected in the interventions designed to stabilise the domestic LPG market, including the directive that all LPG produced in Nigeria be prioritised for local consumption.
“This policy has already strengthened domestic supply, reduced dependence on imports and improved market resilience,” the statement said.
Business Post reports that residents in Lagos and Ogun States continue to face scarcity and high cost of LPG. For a few vendors with the product, the price ranged between N2,000 and N2,400. In early May, it was sold at N1,200.
Mr Ekpo said the commencement of LPG deliveries from the new Seplat gas facility in July will significantly boost national supply.
“The minister also confirms that no producer is exporting LPG volumes designated for the domestic market, as regulatory measures remain firmly in place to prioritise local needs.
“The outlook for LPG supply remains positive, and the Federal Government will continue to pursue measures that enhance availability, affordability and long-term energy security for Nigerian consumers,” the statement.