• Thursday, May 23, 2024
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BusinessDay

FG mulls ban on exportation of LPG to crash prices

FG mulls ban on exportation of LPG to crash prices

…withdraws taxes, levies from importation of gas-related equipment

The Federal Government through the Ministry of Petroleum Resources (Gas) has hinted at a ban on the exportation of Liquified Petroleum Gas (LPG). The government argued that Nigeria should have nothing to do with energy poverty given its abundant proven gas reserve of over 208 TCF.

Ekperikpe Ekpo, the Minister of Petroleum Resources (Gas) stated this in Abuja on Thursday, at a one-day internal stakeholders’ workshop, involving the ministry of petroleum resources and agencies under its supervision.

According to the minister, all LPG products produced within the country would have to be domesticated to increase the volume of available gas and crash the price.

BusinessDay findings showed that 1kg cylinder of gas is sold for N1,300 while a 15kg cylinder is filled for N15,000 in Abuja and major cities across the country.

“There are ongoing interactions with critical sectors to ensure there is no exportation of LPG. All LPG products produced within the country would have to be domesticated, and when this is done, the volume would increase and the price would automatically crash.

“We are in a constant meeting, almost daily, with the producers of gas like – Mobil, Chevron and Shell. So, there is that hope that things will turn around. It is part of it that we are having this engagement to know what is wrong and address it once and for all.

“As an incentive, the government had withdrawn all taxes and levies from importation of gas-related equipment,” he said.

Commenting on the conversion of vehicles to CNG-powered, the minister said interactions were ongoing to crash the cost of conversion.

He said the theme for the workshop, ‘Harnessing Nigeria’s proven gas reserves for economic growth and development’, provided a platform to galvanise actions and take necessary steps to release Nigeria’s abundant gas reserves to accelerate industrialisation and develop the economy for the good of the teeming population.