As Nigerians face a steep rise in cooking gas prices, with LPG reaching N1,500 per kilogram in some areas, industry stakeholders are highlighting the role domestic production could play in reducing costs. Suresh Kumar, Managing Director of NIPCO Plc, expressed concern over Nigeria’s dependence on imported LPG, which makes up more than 60% of the country’s supply.
In Abuja, residents now pay as much as N17,000 to refill a 12.5kg cylinder—a 41.6% jump since July. This situation has raised fears that high prices could drive consumers toward alternative fuels, such as charcoal, which poses environmental challenges.
Efforts to address the rising costs have been made by Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), who recently committed to collaborating with regulators and producers to ease LPG prices. Kumar believes that the Dangote Refinery, along with other local refineries sourcing crude oil domestically, will help stabilize prices.
Increased domestic production would reduce Nigeria’s exposure to foreign exchange fluctuations, which drive up prices due to reliance on imports. Kumar suggested that further government incentives could stimulate investments in gas processing, potentially boosting output and decreasing prices.
Kumar underscored NIPCO’s commitment to strengthening Nigeria’s LPG infrastructure, from its Apapa facility’s expansion to distributing gas across the country via tankers and stations. He emphasized that while LPG is essential for household energy needs, Compressed Natural Gas (CNG) could transform the industrial and transportation sectors.
Despite growing demand, less than 60% of Nigerians currently use LPG, and Kumar sees potential to increase domestic consumption to match the nation’s large population. NIPCO envisions a future where the country’s LPG production can meet up to 5 million metric tons annually, aligning with efforts to end gas flaring and secure a more sustainable energy supply.
- Tags: Hike cooking gas prices, LPG, NIPCO
