An energy expert, Mrs Nkechi Obi says the price of Liquefied Petroleum Gas (LPG), also known as cooking gas can only be drop if the Naira appreciates because LPG pricing is relative to forex volatility.
Obi, who is the Group Managing Director and Chief Executive Officer, Techno Oil Group, stated this in an interview with the News Agency of Nigeria (NAN) on Sunday.
She said that the government ought to get producers such as Shell, Chevron and Totalenergies to allocate some of their products, to meet the local demand of the LPG.
“The price of LPG can only drop if naira appreciates. The Nigeria Liquefied Natural Gas Limited. (NLNG) today is the only local supplier to the domestic market.
“The demand for LPG for domestic use has increased. The NLNG cannot meet 100 per cent 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.
The Federal Government recently said it was interacting with the critical sectors to halt 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 with the Federal Government that may almost be impossible for them to change.
“It’s a tall order because the IOC may have had agreement/clauses entered with the government that may almost be impossible for them to change,” she said.
A kilogramme of cooking gas was sold at N1,400 as against N950 in January.
