NNPC Vows To Address Rise In Cooking Gas Price

In a bold attempt to arrest the astronomical rise in the price of cooking gas, the Group Manager Director of the Nigerian National Petroleum Company Limited, Mele Kyari, on Monday announced plans by the NNPC to increase the supply of liquefied petroleum gas, popularly called cooking gas, as a way to force the price downwards.

In basic economics, the price of an item goes down when supply exceeds demand. The Group MD expressed his belief in this logic during the inauguration of Emadeb Energy Services Limited's 120-metric ton LPG storage and bottling plant in Abuja.

He, however, used the opportunity of the public presentation to explain the reason behind the painful rise in the price of cooking gas. He told the public that the price hike was caused by international pressures.

He went further to explain that because of these international shocks, the organization was deliberately and through partnerships, making frantic but productive efforts to increase domestic supply capacity.

The price of cooking gas has skyrocketed this year, with market observers noting a more than 300 percent increase between January and November of this year.

Just this morning, 3kg of cooking gas cost NGN2,200 in some Lagos State locations.This development has forced many households to switch to unhealthy alternatives such as charcoal and firewood stoves.

Melle Kyari, while speaking to journalists at the event, mentioned that two things were in play as regards the gas issue.

"One is the supply in the international market for gas. It moves with the price of every other petroleum product, including crude oil and its derivatives.

So definitely, it is a reflection of what is happening in the international market. However, what we are doing is to increase supply, and once supply increases, the prices will come down", he said.

However, the Managing Director/Chief Executive Officer of Emadeb Energy Services, Adebowale Olujini, pleaded that more government support should be given to LPG investors considering the cost required to invest in the sector.