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FG ties rising cooking gas price to supply shortage, others

By Bridget Chiedu Onochie, Abuja
14 December 2021   |   3:04 am
The Federal Government has, again, blamed the escalating price of cooking gas on shortage of supply and the prevailing global price.

Cooking gas. Photo: PIXABAY

The Federal Government has, again, blamed the escalating price of cooking gas on shortage of supply and the prevailing global price.

Group Managing Director (GMD), Nigerian National Petroleum Company Limited (NNPC), Mele Kyari, who spoke, yesterday, at the commissioning of 120 metric tons Liquefied Petroleum Gas (LPG) storage and bottling plant built by Emadeb Energy Service Limited, however, assured that the government was working towards increasing product supply.

Since the price of gas moves with the price of crude, Kyari noted that the high cost of cooking gas being witnessed across the federation was nothing other than a reflection of the prevailing situation at the international market.

“What we are doing is to increase supply. Once supply increases, the price will come down,” he promised.

The GMD also pledged the government’s support for private investors to ensure that the demand for the product is met.

According to him, the current administration would guarantee supply to any organisation that ventures into the gas business.

“As you are aware, we are NNPC Limited. While we are here to support Nigerians, we are also here to make money. Therefore, we would be there upstream to provide the gas that would be supplied through our numerous initiatives,” he stated.

The Chief Executive Officer, Emadeb Group, Debo Olujimi, who assured of a consistent supply of the commodity to Lokogoma area of the Federal Capital Territory (FCT) and environs, urged the government to encourage private investors in the sector.

In spite of the controversy surrounding gas prices, Olujimi said the company’s driving force remains that someone must engage in the business irrespective of the discouraging factors because of the value attached to it.

“I feel fulfilled that Emadeb Group is bringing clean energy to Abuja market. There is a lot of value in gas because it is the way forward,” he said.

While admitting that there is enough quantity of raw gas, he decried that its infrastructure is capital intensive.

“But the government cannot do everything. All we need is for it to encourage private investors so that they can come in with funds and equipment in order to get the value.

“Another issue is that gas is needed for everything. The electricity supply has to do with the price and shortage of gas. Those are the things the government has to look into. As local investors, nobody will do it for us, and that is the reason we are here,” Olujimi added.

With the 120 metric tons LPG facility, the company hopes to expand its storage facility to 240 metric tons within 18 months.