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Tag: LPG

  • FG issues fresh directives to reduce LPG cost

    FG issues fresh directives to reduce LPG cost

    Mr Ekperikpe Ekpo, Minister of State Petroleum Resources (Gas), has directed the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Liquefied Petroleum Gas (LPG) producers to stop LPG export with effect from Nov. 1.

    Ekpo issued the directive on Tuesday in Abuja at a meeting with stakeholders to address the skyrocketing price and its attendant hardship on Nigerians.

    The minister, in a statement by his spokesperson, Louis Ibah, expressed deep concern over the continuous increase in LPG price in the country.

    “On the short term solution, with effect from Nov. 1, 2024, NNPC Ltd. and LPG producers are to stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost reflective prices.

    “On pricing framework, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), will engage stakeholders to create a domestic LPG pricing framework within 90 days indexing price to cost of in-country production.

    “This is rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and Nigerians are required to pay higher price for an essential commodity the country is naturally endowed with.

    “On long-term solution, within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability,” he said.

    He explained that the directives were a step towards addressing the inherent challenges and ensuring that Nigerians have access to affordable cooking gas.

    He said the new measures would improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike.

    Recall that in a bold move to tackle its soaring price, the minister had established a high-level committee in Nov. 2023, led by the Chief Executive, NMDPRA, Mr Farouk Ahmed, comprising key stakeholders in the LPG value chain.

    However, in spite of the effort to address the issue, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100 – N1,250 per kg.

  • FG crashes price of cooking gas

    FG crashes price of cooking gas

    The price of liquefied petroleum gas,  (LNG) popularly known as cooking gas, appears to be crashing.

    Findings show that the average cost of 1 kilogramme of cooking gas has crashed to  N1,000 or below, depending on the location and the seller.

    It was gathered that between February and March, the price of LPG rose to around N1,300 and above in some locations.

    Moreso, in February, the National Bureau of Statistics (NBS) said the price of 12.5kg of LPG increased by 46.88 per cent in one year.

    According to NBS, the average price for refilling a 12.5kg cylinder of cooking gas in February increased to N15,060.38, compared to N10,253.39 in February 2023.

    The NBS also noted that the average retail price for refilling a 12.5kg cylinder of LPG went up by 28.33 per cent in a month — from N11,735.72 in January 2024 to N15,060.38 in February 2024.

    Reacting to the latest development, the Minister of Petroleum Resources, Ekperikpe Ekpo, said the reduction in the price of LPG  was a result of the efforts being made by the Federal Government, through the Ministry of Petroleum Resources (Gas) with the full support of relevant regulatory agencies in the sector and even operators to increase the volume of domestically produced cooking gas coming into the local market.

    According to him, this has forced the price to come down, saying more effort are still in place to ensure further reduction in price of cooking gas.

    The FG is poise on crashing the price of LPG as well as maintain the current price of CNG in the country.

  • UPDATED: FG moves to ban cooking gas export

    UPDATED: FG moves to ban cooking gas export

    The Federal Government says it is interacting with the critical sectors to halt exportation of Liquefied Petroleum Gas (LPG), also known as cooking gas in view of its rising cost.

    The federal government said that all LPG produced within the country would be domesticated to crash the price of cooking gas.

    The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo disclosed this at the opening of its Internal Stakeholders’ Workshop, on Thursday in Abuja.

    The workshop which is across the gas value chain on repositioning the nation’s gas sector, has its theme as “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development “.

    “All LPG produced within the country will have to be domesticated and when this is done the volume will increase and of course the price will automatically crash.

    “I am in contact with the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the producers of LPG such as Chevron, Mobile and Shell, we have meetings on daily basis.

    “There is hope that things will turn around, we do not need to make noise about it and it is based on this that we having this engagement to find out the problems and address them once and for all,” Ekpo said.

    On conversion of vehicles to Compressed Natural Gas (CNG), to cushion effect of fuel subsidy removal, Ekpo said he has been interfacing with the Presidential Initiative on CNG towards realising the goal.

    He said, “the moment I get clearer picture about it, I will address you accordingly,’’ adding that the impact on withdrawal of taxes and levies from gas related equipment would not reflect that way, because the investors are humans and would like to maximise profit, though the policy has been put in place.

    “But at the end of the day the regulators have to come in and interface with them to ensure they crash the price,’’ he said.

    According to him, the demonstration by the federal government by withdrawing all taxes and levies from importation of gas related equipment is a big incentive.

    The workshop also featured a presentation by Mrs Oluremi Komolafe, Director Gas of the ministry on highlights from the minister’s consultation with the operators in the nations’ gas sector in Feb. 6.

    Speaking on the recommendations by the operators, she said they called for balancing gas pricing while considering the impact on the average consumer is imperative for sustainable sectoral growth.

    Komolafe said the LPG retailers urged the Minister to look into the issue of soaring price of cooking gas as it had become relatively un-affordable to the common man.

    She said the retailers highlighted that the surge in price was capable of jeopardising the clean cooking initiative and made the use of charcoal attractive and cheaper alternative.

    “They also mentioned the issue of substandard gas cylinders as a great challenge and called on the Ministry to look into the issue and enact a national cylinder and accessories policy to curb it,’’ she said.

    Checks showed that cooking gas price increased to N1,400 as against N950 per kg in January, 2024.

  • Don’t blame us for surge in price of cooking gas – NLNG

    Don’t blame us for surge in price of cooking gas – NLNG

    The Nigeria Liquefied Natural Gas Limited (NLNG), says the company has not increase the price of Liquefied Petroleum Gas (LPG).

    Mr Andy Odeh, General Manager, External Relations and Sustainable Development, NLNG, dismissed the alleged report of the increase in a statement issued in Port Harcourt on Wednesday.

    He said the company cannot be blamed for any current surge especially as NLNG has so far delivered over 380,000 metric tonnes of LPG to the domestic market.

    He said “NLNG has noted media reports insinuating that a price hike by the company is responsible for the surge in the domestic LPG, commonly known as cooking gas.

    “The reports insinuated a price hike by the company and predicted that scarcity looms as a consequence.

    “NLNG dismisses these media reports as speculative and indicative of a fundamental misunderstanding of Nigeria’s intricate market dynamics.”

    Odeh said the company has grown the nation’s domestic LPG market volume from 50,000 metric tonnes in 2007 to over 1.3 million metric tonnes of both domestic and imported LPG in 2023.

    “NLNG currently delivers over 450,000 metric tonnes per annum of Butane – the main product in cooking gas – and has embarked on domestic propane supply to further grow the market.

    “The company has committed its entire Butane and Propane production to the domestic market from 2023, accounting for approximately 40 per cent of the total market volume.

    “Since the beginning of the year, NLNG has delivered over 380,000 metric tonnes of LPG using the company’s dedicated LPG vessel,” he added.

    The NLNG general manager said the company remained committed to delivering domestic LPG to locations close to the market.

    He said diversifying delivery points, starting with Lagos in 2023, would ensure competition among terminal owners resulting to reduction in consumer supply chain costs.

    According to him, the company was making efforts to reach terminals in Warri and Calabar as soon as challenges limiting safe delivery of gas to other locations are achieved.

    “The domestic LPG market like any other is subject to dynamic market forces and various external factors.

    “Factors like changes in exchange rates, and escalating price benchmarks mirroring crude oil prices, and the Panama Canal drought-induced vessel scarcity impacted transport costs especially for imported LPG.

    “These factors have had a significant effect on energy prices in recent times and could undoubtedly be some of the reasons for recent price hikes witnessed in the domestic market,” he explained.

    Odeh said that NLNG was fully focused towards ensuring the reliable supply of LPG production to the domestic market at prices that are reflective of the market.

  • How price of cooking gas is skyrocketing in Nigeria

    How price of cooking gas is skyrocketing in Nigeria

    The National Bureau of Statistics (NBS) says the average price of 5kg of cooking gas increased from N4,072.87 recorded in July to N4,115.32 in August 2023.

    This is contained in the Bureau’s “Cooking Gas Price Watch’’ for August 2023 released on Monday in Abuja.

    The report said the August 2023 price represented a 1.04 per cent increase, compared to what was obtained in July 2023.

    However, the average price of 5kg of cooking gas decreased on a year-on-year basis by 7.66 per cent from N4,456 recorded in August 2022 to N4,115.32 in August 2023.

    On state profile analysis, the report showed that Kwara recorded the highest average price at N4,816.67 for 5kg cooking gas, followed by Benue at N4,766.67, and Zamfara at N4,756.25.

    It said on the other hand, Ondo recorded the lowest price at N3,299.29, followed by Ekiti and Nasarawa at N3,330.00 and N3,533.33 respectively.

    Analysis by zone showed that the North-Central recorded the highest average retail price at N4,501.26, followed by the North-West at N4,340.50

    “The South-West recorded the lowest retail price at N3,3737.12,” the NBS said.

    Also, the NBS said the average retail price for 12.5kg cooking gas increased by 0.35 per cent on a month-on-month basis, from N9,162.11 in July 2023 to N9,194.41 in August 2023.

    However, the report said the average price of 12.5kg cooking gas dropped by 7.12 per cent on a year-on-year basis, from N9,899.34 recorded in August 2022 to N9,194.41 in August 2023.

    On state profile analysis, it showed that Cross River recorded the highest average price at N10,172.83 for 12.5kg cooking gas, followed by Ogun at N9,963.64 and Nasarawa at N9,883.37.

    On the other hand, the report showed that Adamawa recorded the lowest price at N7,597.92, followed by Borno at N8,103.69 and Gombe at N8,173.44.

    Analysis by zone showed that the South-South recorded the highest average retail price at N9,569.58 for 12.5kg, followed by the South-West at N9,344.17.

    The report said the North-East recorded the lowest price at N8,631.95.

    Similarly, the average retail price per litre of Kerosene rose to N1,272.40 in August 2023 on a month-on-month basis, showing an increase of 0.92 per cent, compared to N1,260.81 recorded in July 2023.

    According to its National Kerosene Price Watch for August 2023, on a year-on-year basis, the average retail price per litre of kerosene rose by 57.18 per cent from N809.52 in August 2022.

    On state profile analysis, the report showed that Adamawa recorded the highest average price at N1,745.83 per litre of kerosene in August 2023, followed by Benue at N1,468.33 and Abuja at N1,486.89.

    “On the other hand, Jigawa recorded the lowest price at N1,000 followed by Edo at N1,104.78 and Kaduna at N1,121.79.”

    The NBS said the analysis further showed that the North-East recorded the highest average retail price per litre of kerosene at N1,370.64, followed by the South-East at N1,332.49.

    It said the North-West recorded the lowest average retail price per litre of kerosene at N1,163.25.

    The report said the average retail price per gallon of kerosene paid by consumers in August 2023 was N4,351.53, indicating a 1.06 per cent increase from N4,306.07 in July 2023.

    “On a year-on-year basis, the average price per gallon of kerosene increased by 47.63 per cent from N2,947.65 recorded in August 2022.”

    On state profile analysis, it showed that Lagos recorded the highest average price at N5,350.83 per gallon of kerosene, followed by Katsina at N4,991.85 and Borno at N4,897.47.

    On the other hand, the report said Delta recorded the lowest price at N2,945.71, followed by Rivers and Oyo at N3,287.50 and N3,711.79, respectively.

    Analysis by zone showed that the North-East recorded the highest average price per gallon of Kerosene at N4,637.71, followed by the South-East at N4,590.69.

    The report said the South-South recorded the lowest average price per gallon of Kerosene at N3,727.30.

  • Marketers raise alarm over rising price of cooking gas

    Marketers raise alarm over rising price of cooking gas

    The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has raised the alarm over the rising price of liquefied petroleum gas (LPG), otherwise known as cooking gas, in the country.

    Mr Abideen Olatunbosun, National President, NALPGAM, raised the alarm during the 36th Annual General Meeting of the association held in Ibadan on Tuesday.

    Olatunbosun appealed to the Federal Government to find a lasting solution to the rising price of cooking gas in the country, stressing that if not addressed, cooking gas might become a commodity only affordable to the affluent.

    “It is very vital for me to state that continuous increase in the price of gas in recent time stands as a big challenge to LPG marketers.

    “The government needs to find ways to ensure stability of gas price as well as make gas available to common Nigerians.

    “As a country, we need to improve on our gas utilisation level and if we all adopt gas, it will save our forest and improve quality of our lifestyle and the economy will grow,” he said.

    According to Olatunbosun, the hike in the price of gas is a concern to all.

    Olatunbosun called for collaborative efforts between the government and the private sector to establish critical gas infrastructure.

    Speaking at the event, the guest speaker, Prof. Sunday Isehunwa of the Department of Petroleum Engineering, Faculty of Technology, University of Ibadan, said that LPG offered a huge promise for increased domestic gas utilisation in Nigeria.

    He said that cooking gas also served as the country’s energy transition to net-zero carbon emission by 2060.

    According to Isehunwa, there is need for increased LPG supply to meet rising demand and curtail sharp practices by some operators.

    “The Nigeria Liquefied Natural Gas (NLNG) has been the major supplier of LPG, however, additional supplies are essential through functional refineries, and adequate natural gas processing facilities.

    “Removal of difficulties in importation when necessary is also essential for additional supplies.

    “Adequate infrastructure development is highly necessary to enhance access to LPG by rural communities.

    “Accessibility will increase through increased economic empowerment of consumers and relatively low costs of products,’’ the don said.

    Also, Mr Ogbugo Ukoha of the Nigerian Midstream And Downstream Petroleum Regulatory Authority (NMDPRA), said that the recent deregulation policy would result to a reflective petroleum products pricing.

    Ukoha, who is the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, noted that current data had shown that the domestic gas supply had overtaken the import supply.

    He said that necessary infrastructure investment must be put in place to address challenges of gas reserve so as to achieve smooth distribution of the product.

    “Our focus is to make necessary investment in gas infrastructure to increase LPG supply so as to force its price down for Nigerians,” Ukoha said.

    The AGM featured the dissolution of the current governing council of NALPGAM, election of new national executives and the presentation of plaques.

  • How to contain rising cost of cooking gas – Retailers

    How to contain rising cost of cooking gas – Retailers

    The Liquefied Petroleum Gas Retailers (LPGAR) has advised the federal government of Nigeria on ways to contain the rising cost of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, in the country.

    TheNewsGuru.com (TNG) reports Mr Ayobami Olarinoye, Branch National Chairman of LPGAR, gave the advice in an interview on Friday against the backdrop of the incessant increase in the price of cooking gas.

    Recall President of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Mr Olatunbosun Oladapo, recently disclosed the price of LPG has increased at terminals.

    This was a result of a sudden increment from N9 million to N10 million per 20 metric tons to N14 million per 20 metric tons.

    According to Olarinoye, LPG price has recorded more 30 per cent increment in the last three weeks and is likely to continue.

    He attributed the development to off-takers and depot owners’ continuance to make upward review of the price almost on daily basis.

    He said some  LPGAR members had run out of stock because they could not restock their outlets as a result of the sharp increases.

    The development, Olarinoye added, had brought untold hardship to Nigerians and due to the recent removal of subsidy

    “We are appealing to the Federal Government to provide incentives to the LPG investors to make the price affordable.

    “Similarly, our union believes that the incessant rise in LPG price would be contained if more storage facilities are built by the major marketers and off-takers.

    “We equally think that both states and federal governments should equally intervene in the way of building depots and maintaining the existing ones built by federal government,” he said.

    The LPGAR chairman said that if this is done it would equally provide a leadway for non-major-marker off-takers to use the depots devoid of ‘commercial’ encumbrance.

    He also appealed to the Nigerian Liquified Natural Gas (NLNG) to increase its production capacity to meet the rising demand of LPG.

    “We believe that if NLNG transacts with their local LPG marketers in local currency that it would go a long way in reducing and of course stabilise the price.

    “Already, the poor are going back to the traditional cooking energies which are detrimental to their health and the ecosystem,” Olarinoye explained.

    Similarly, the NALPGAM President called on the Minister of State Gas Resources and other government agencies to audit the volume of cooking gas supplied to the domestic market by NLNG.

    He also called on the government to determine the rate and quantity at which it is possibly supplied.

    Olatunbosun noted that Nigeria’s consumption of cooking gas had dropped to around 700,000 metric tons per annum in the last year.

    This, according to him, it’s significantly lower than other countries such as the Republic of Benin which consumes more cooking gas than Nigeria.

  • President Buhari sets up 14-man committee to tackle fuel scarcity

    President Buhari sets up 14-man committee to tackle fuel scarcity

    President Muhammadu Buhari has approved the constitution of a 14-man Steering Committee on Petroleum Products Supply and Distribution management to find a lasting solution to disruptions in the supply and distribution of petroleum products.

    The Steering Committee, which will be chaired by Buhari, has the Minister of State for Petroleum Resource Chief Timipre Sylva as Alternate Chairman.

    Sylva, in a statement by his Senior Adviser (Media and Communications), Horatius Egua said the committee would among other things ensure transparent and efficient supply and distribution of petroleum products across the country.

    To further ensure sanity in the supply and distribution across the value chain, Sylva directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure strict compliance with the government approved ex-depot and retail prices for PMS.

    The minister also directed the NMDPRA to ensure that NNPC Limited, which is the supplier of last resort meets the domestic supply obligation of PMS and other petroleum products in the country.

    He further directed that the interests of the ordinary Nigerian is protected from price exploitation on other deregulated products such as Automative Gas Oil (AGO), Dual Purpose Kerosene (DPK) and Liquified Petroleum Gas (LPG).

    “The Federal Government will not allow misguided elements to bring untold hardship upon the citizenry and attempt to discredit government’s efforts in consolidating the gains made thus far in the oil and gas sector of the economy,” he said.

    Other terms of reference are to ensure national strategic stock management, visibility on the NNPC Limited refineries rehabilitation programme and ensure end-end tracking of petroleum products, especial PMS to ascertain daily national consumption and eliminate smuggling.

    Members of the committee also include Minister of Finance, Permanent Secretary, Ministry of Petroleum Resources, National Economic Adviser to the President and Director-General, Department of State Services (DSS).

    Others are Comptroller-General, Nigerian Customs Service (NCS), Chairman, Economic and Financial Crimes Commission Member (EFCC), and Commandant-General, Nigerian Security and Civil Defence Corps (NSCDC)

    The Steering Committee members also include Authority Chief Executive NMDPRA, Governor, Central Bank of Nigeria, G r o u p Chief Executive Officer, NNPC Limited, Special Advisor (Special Duties) to the HMSPR while the Technical Advisor (Midstream) to the HMSPR will serve as Secretary.

    PMS-approved ex-depot price is N148.17 per litre as of 2022 while NNPC retail stations dispense at N179, and other filling stations dispense between N180 and N184.

  • Why you should avoid using expired gas cylinders

    Why you should avoid using expired gas cylinders

    Mr Ibrahim Mohammed, Chairman, Association of Liquefied Petroleum (LPG) Plant owners in Adamawa has advised customers to avoid using expired gas cylinders, describing them as “time bombs“.

    Mohammed, who gave the advice on Thursday in Yola, said non-usage of expired gas cylinders would save lives and property.

    He said that each gas cylinder has an expiring date, hence the need to replace them after 15 years to avoid explosion.

    “This cylinder that you are using have expiring date after 15 years, so it is important for you not buy cylinders that has no date.

    “You should always be cautious by complying with safety guidelines, as compliance is key”, he advised.

    According to him, it is advisable for people to paste the guidelines in their kitchens to serve as a remainder at all times in the event of any challenge.

    Mohammed also advised customers to call or go to back to gas plants in case of leaks and other operational challenges.

    He appealed to state governments to upgrade their fire fighting facilities by providing then with more modern equipment.

    He said that government also needed to enlighten the public on safety guidelines.

    He said there were about 14 gas plants in the state, made up of four in Mubi and 10 others in the Jimeta-Yola axis.

  • Price of cooking gas continued upward trend in December 2021 – NBS

    Price of cooking gas continued upward trend in December 2021 – NBS

    Despite optimism by marketers, the price of five kilograms (5kg) of Liquefied Petroleum Gas (LPG) known as cooking gas, continued its upward trend in December 2021 by 8.53 per cent at N3,594.81 from ₦3,312.42 in November 2021.

    The National Bureau of Statistics (NBS) said this on Thursday, in its LPG Price Watch for December 2021, obtained from its website.
    The report said that the price increased from ₦1,949.75 in December 2020, showing an increase of 84.37 per cent, on year-on-year basis.

    It said that the highest average price for refilling a-5kg cylinder was recorded in Benue ₦4,083.33, Cross River ₦3,975.00 and Borno ₦3,966.67.

    However, the lowest average prices were recorded in Adamawa at ₦2,398.40, Yobe ₦2,543.14 and Bauchi ₦2,586.43.

    “Similarly the average price for refilling a-12.5kg cylinder of cooking gas increased year-on-year by 76.49 per cent to ₦7,332.04 in December 2021 from ₦4,154.28 in December 2020.

    “The month-on-month analysis showed that the average price increased by 0.33 per cent from ₦7,308.06 in Nov. 2021,” it said.

    Giving a breakdown of the highest average price by states, the NBS said that 12.5kg cylinder was sold at ₦8,491.67 in Osun, ₦8,303.33 in Oyo and ₦8,058.00 in Abuja.

    For the lowest average price, Borno residents bought at ₦5,852.13, Bayelsa ₦6,678.57 and Nasarawa ₦6,679.57.

    For National Household Kerosene, consumers paid an average price of ₦467.97 per liter in December 2021, an increase of 6.10 per cent on a month-on-month basis from ₦441.06 in November 2021.

    On a year-on-year basis, the average price increased by 32.65 per cent from ₦353.79 in December 2020 to ₦467.97 in December 2021.

    The NBS said that the top three states with the highest average price per liter in the month under review were Ebonyi with ₦687.50, Abia ₦585.00 and Ekiti ₦552.08.

    Also, the states with the lowest average prices per liter were Bayelsa with ₦300.00, Kwara ₦355.60 and Nasarawa ₦384.85.

    “On the other hand, the average price per gallon (3.79 litres) of kerosene paid by consumers increased by 2.51 per cent on a month-on-month basis from ₦1,544.01 in November to ₦1,582.73 in December.

    “The year-on-year analysis shows that the average price per gallon (3.79 litres) of kerosene increased by 34.63 per cent from ₦1,175.59 in December 2020 to ₦1,582.73 in December 2021,” it said.

    The highest prices were recorded in Cross River with ₦2,035.94, Lagos ₦2,015.79 and Jigawa ₦2,004.44 while the lowest prices were recorded in Adamawa with ₦1006.25, Yobe ₦1,164.29 and Borno, ₦1,181.25.

    The NBS said that in arriving at the report about 700 of its staff did field work in all states of the federation supported by supervisors who were monitored by internal and external observers.

    It said its audit team subsequently conducted randomly selected verification of the prices recorded.

    Meanwhile, entering into the new year, marketers have said the price of the commodity has started dropping.