BY AKINWALE ABOLUWADE, IBADAN
Prices of cooking gas has continued to rise in the country despite the increase in local production of the essential product.
The local production of gas, according to the Petroleum Products Pricing Regulatory Agency’s report on supplies in September 2021, released on Sunday, has increased to 49,453.081 Metric Tonnes.
The increase is 23 per cent compared to a total of 38,040.457MT recorded in August 2021.
The 12.5 kilogram of cooking gas, sold at N4,000 in January rose to N7,200 in August 2021 and further rose to N7,700 in September.
Report by the PPPRA showed that 49,453.081MT of the 76,578.986MT LPG supplied nationwide was produced locally. A total of 27,125.905MT was imported.
A report signed by the General Manager, Corporate Services, of PPPRA, Kimchi Apollo, read that “In the month of September 2021, PPPRA LPG data showed that 49,453.081MT was supplied into the domestic market by Algasco, Stockgap, NIPCO, 11 plc, Prudent, Greenville Natural Gas, PNG Gas, NPDC and Ashtavinayak Hydrocarbon Limited with 66.58per cent of the supply sourced from the NLNG, whilst 27,125.905 MT was imported by Rainoil, Algasco and Prudent.
“It is worthy to note that the quantity of LPG sourced locally rose from 38,040.457MT in August to 49,453.081MT in September, while importation reduced from 47,224.346MT to 27,125.905MT.
“The marked improvement in local production reflects the success of President Muhammadu Buhari and the Minister of State for Petroleum Resources, Timipre Sylva in providing the right enabling business climate for the gas industry to thrive.
“Government policies and programmes such as the National Gas Policy, Nigeria Gas Flarek Commercialisation Programme, National Gas Expansion Programme, and the Decade of Gas declaration are responsible for the quantum of investments we see today in the gas industry.
“Some of these investments include the NPDC Oredo Integrated Gas Handling Facility, Kwale Hub Gas Processing Plants (PNG, Ashtavinayak Hydrocarbon) Greenville LNG, Rivers State and OSO/Bonny River Terminal project.
“In terms of policies, the waiver of import duties on LPG production equipment as well as the Zero VAT for locally produced LPG have, indeed, heightened the prospects of domestic investment in the sector.
“In addition, a Pioneer Status Incentive for some categories of LPG Investments was also introduced. The PPPRA remains committed to the development of Nigeria’s vast gas resources and strengthening the entire value chain.”
