The Nigerian National Petroleum Corporation (NNPC), has indicated its interest to crash the price of Liquefied Petroleum Gas (LPG), also known as cooking gas. This was made known in a statement.
In the released statement, the corporation made known that it’s set to implement an effective commercial framework that would halt the export of propane and butane which are major components in the production of cooking gas.
The Group General Manager, Group Public Affairs Division, Ndu Ughamadu in the statement said the move to stop the export of propane and butane which is anchored by the Crude Oil Marketing Division of the corporation would enable the Corporation boost supply of LPG to the domestic market thereby leading to a natural downward slide in the price of the product in the country.
The NNPC spokesman quoted the Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, Mallam Mele Kyari, as saying: “Currently some of our butane and propane entitlements are exported largely due to lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework. What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption”.
Mallam Kyari who disclosed this at a strategy session said the Division was working in concert with stakeholders to create the enabling environment for in-country production of LPG and cessation of export of the country’s equity butane and propane entitlements due to absence of in-country vessels for transport and other considerations.
Prior to this, the Federal Government has removed Value Added Tax (VAT) on locally produced cooking gas in Nigeria. This was understood to be a move that will encourage more investors in the cooking gas market.
Osa Ogieva-Okunbor, the President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), said the removal of the VAT was an effort to develop effective policies to encourage investors to come into the LPG sector to deepen market penetration, boost the country’s economy and protect the environment.