The Nigerian National Petroleum Company Limited is currently increasing the supply of Liquefied Petroleum Gas, popularly called cooking gas, to pull down the price of the commodity.
This was disclosed by the Group Managing Director of the Nigerian National Petroleum Company Limited, Mele Kyari, at the inauguration of a 120-metric tonnes LPG storage and bottling plant by Emadeb Energy Services Limited in Abuja.
According to the GMD of the NNPC, the hike in cooking gas prices was an international issue.
What the NNPC is saying about gas supply
He said, “Two things are in play. One is the supply in the international market of 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, price will come down.”
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The cost of LPG has been rising since the beginning of the first quarter, jumping by more than 240 per cent between January and October 2021, a development that has forced many LPG users to shift to charcoal or firewood.
Nairametrics had reported when the Minister of State for Petroleum, Chief Timipre Sylva, at the 23rd World Petroleum Congress in Houston, Texas, USA, revealed that the increase would position Nigeria among the countries with the highest gas reserves in the world.
He said, “We have a lot of gas in Nigeria. We currently have 206 trillion cubic feet of gas reserves.
“This number is already discovered in gas reserves and the 206 trillion cubic feet reserve were discovered while looking for oil; so it was accidentally discovered.
“We were actually going to look for crude oil and we found gas, and in that process of the accidental discovery of gas, we have found about 206 TCF.”