Following a report by the Ministry of Petroleum Resources, the government of Nigeria is aiming to reduce the price of Liquefied Petroleum Gas (LPG) or domestic cooking gas in the country. If successful, the reduction will be a big leap in Nigeria’s vision towards the actualization of gas as a source of cleaner energy. It will also discourage the continual use of firewood which has provided a cheaper energy source due to the high prices of gas.
Nigeria’s Minister of State for Petroleum Resources, H.E. Chief Timipre Sylva noted on his review of the report that the price reduction is necessary as it will increase stakeholders’ interest and improve investment in the sector. With Nigeria’s abundant natural gas resources – currently estimated at 203 trillion cubic feet of proven reserves -, the price reduction will encourage further utilization of the resource.
“Without appropriate pricing, we can’t get it right,” stated Sylva. “We have to ensure that gas becomes affordable. It is sad to note that we sell gas cheaply to investors while the price is high in the domestic market to the extent that some Nigerians say diesel is cheaper than gas.”
The Ministry’s Permanent Secretary, Mr. Bitrus Nabasu, noted that with the successful implementation of the LPG price cut, there would be a boost to the country’s economic development.
“The pricing must be cost reflective, non-discriminatory, realistic and market-determined,” stated Nabsau. “Cheap gas which Nigeria boasts to have in abundance remains our only nexus to economic sustainability.”