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OIL & GASSOCIETY

NNPC Gives Reasons For Spike In Price Of Cooking Gas

NNPC Gives Reasons For Spike In Price Of Cooking Gas

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has explained that a low supply of LPG, otherwise called cooking gas, is responsible for the recent hike in price of the product.

He said his during a working visit to the headquarters of the Department of Petroleum Resources (DPR) in Abuja on Tuesday.

Kyari said the corporation was working with other agencies and a strategy has been developed to expand its sources in order to ensure gas is directly delivered to the homes of end-users.

“Today, this country is under-supplied with gas. I can tell you that we are having difficulty feeding our network across the country with gas, every day, it is a trouble to deliver gas. Once your supply is weak, it will affect pricing”, the NNPC GMD said.

“The supply mechanism of our LPG is very weak, that is why we are collaborating extensively to make sure that we are able to extract LPG from our gas resources so that it is made available to the market. Once supply becomes high, definitely, the price will definitely be impacted.”

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He said, “If we do this, all cylinders will not be of any use. That is why I don’t see them used in many developed countries. When we are able to power thermal gas plants across the country and very close to the users, ultimately, homes will be run with electric cookers and utensils and that way, you will have less need for cylinders.

“We are transiting and we will continue to add more volume into the market so that we bring down the prices.”

In his remark, the Director/CEO of DPR, Engr Sarki Auwalu, noted that the increase in availability in gas would engender job employment and help the country to have energy security.

About Author

Ife Ogunfuwa is an award-winning reporter who is versed in reporting business and economy, technology, gadgets reviews, telecoms, tax, and business policy review, among others. She loves telling stories behind the numbers. She has professional certifications in business and financial reporting. You can reach her via – [email protected]

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