Gas: FG Says It Doesn’t Have Control Over Hike In Price; Nigerians Groan

By Akinwale Kasali

The price of Cooking Gas keeps has skyrocketing making it difficult for Nigerians to purchase the commodity, and leading to complains from different quarters.

The President Muhammadu Buhari led Federal Government has compounded the woes of Nigerians following its declaration that it has no control over the prices of Cooking Gas, leaving Nigerians to their fate.

The Federal Government through the Minister of State for Petroleum Resources, Timipre Sylva revealed on Tuesday that it has no control over the price of cooking gas because the product is fully deregulated in the country.

Sylva, also, noted that President Buhari is worried about the hike in the price of the commodity.

The Minister was at the Presidential villa, Abuja to introduce to the President the CEO, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, Engr. Faruk Ahmed and the CEO, Nigerian Upstream Petroleum Regulatory Commission NUPRC, Engr. Gbenga Komolafe.

He asserted that gas prices are determined by the global market, even though he indicated that Government will do everything possible to bring down the price especially during the Yuletide season.

He said, “We must understand that cooking gas is not subsidized. It is already a deregulated commodity. So the price of cooking gas is not determined by the Government or by anybody in the industry. In fact, gas prices are determined internationally.

“And you all are aware that in Europe, today, gas prices have gone up. There was even a crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.

“Apart from that, there are some issues around VAT charges on imported gas, and of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it side by side with the local producers of gas.

“So, if you incentivize the importance too much, then you will also kill the local industry. And also, you don’t want to incentivize the local industry at the expense of the imports, because if incentivize the local industry at the expense of the imports, then you will not have enough gas produced within the country.

“So, these are the issues of balancing that the midstream and downstream regulatory authority are handling and I want to assure you that we are quite concerned.

“Mr. President also is very concerned. He is aware that the price of gas is high in the market, and we’re doing everything trying to see how we can bring down the price of gas especially as we approached the Yuletide.”

Sylva also disclosed that the President has directed him to proceed to Nembe, Bayelsa State to investigate the level of damage caused by the recent gas spillage in the area.

The Minister stated that he will visit the affected communities on Wednesday to assess the situation.

It would be recalled that Governor Ifeanyi Okowa of Delta State complained bitterly about the hike in the price of Cooking Gas making life difficult and unbearable for Nigerians.

For instance, the 12.5kg cylinder of gas that was sold for about N3,500 earlier in the year has risen to N9,500 and N11,000, depending on the location and availability in the parts of the country, which Governor Okowa said

must not be allowed to continue.

The Delta helmsman said concerted efforts must be made towards reducing the rising cost of Liquefied Petroleum Gas in the country, if the objective of the National LPG Expansion plan was to be achieved.

The Governor said the adverse effects of climate change due to the use of fossil fuels has thrown on mankind the urgent need to move to a cleaner energy.

According to him, the situation has made “the adoption of LPG as a transition fuel to greener sources exigent and Delta State is keen to play a vital role in this process and will give this awareness programme maximum support.

“Delta is home to 40 per cent of the nation’s natural gas endowments, hence a large number of oil and gas companies operate in the state. However, as we adopt LPG as the fuel to drive the socioeconomic activities of the economy, we must acknowledge a big challenge currently confronting the populace: the issue of high price of LPG in the market.”

Okowa said “at the rate the price is skyrocketing, LPG is gradually getting out of the reach of the middle class and the common man.

“The price increase has been linked to several factors including the VAT re-introduction, devaluation of the naira and large importation of LPG vis-a-vis low production locally.

“It is imperative that policy makers find a way to mitigate this upward trend in the price of LPG to give succour to our people and if the goals of the LPG expansion plan are to be realised.”