NNPC attributes rising cooking gas prices to undersupply

Mele Kyari, group managing director of the Nigerian National Petroleum Corporation (NNPC), says the challenges in sourcing adequate supply of cooking gas led to the increase in prices of the commodity.

Kyari said this on Tuesday in Abuja when he paid an official visit to Sarki Auwalu, director of the Department of Petroleum Resources (DPR).

“Today, this country is undersupplied with gas; we can tell you that we are having difficulty filling our network across the country with gas. So that means that once supply is weak, it will affect pricing,” Kyari said.

“Today, the supply mechanism of LPG is very weak. So, we are collaborating extensively to ensure that we are able to extract LPG from our gas resources so that it can be made available to the market.

“To make price more affordable, we are working towards providing more volume of gas into the domestic market. By doing this, we make it very close to home and extend the networks, once supply is high, it will definitely bring down the prices.”

The NNPC boss assured citizens that the corporation is working with relevant agencies to ensure that the price of gas is affordable. 

He said the corporation’s strategy to expand its network of availability would subsequently lead to gas directly delivered to homes of end-users.

“If we do this, all cylinders will not be of any use. That is why I don’t see them used in many developed countries,” Kyari explained.

“When we are able to power thermal gas plants across the country and very close to the users, ultimately, homes will be run with electric cookers and utensils and that way, you will have less need for cylinders.

“We are transiting, and we will continue to add more volume into the market so that we bring down the prices.”

He also said that the excess availability of the commodity would aid in stabilising power supply and distribution in the country as thermal plants will supply power generating companies’ gas which is affordable and accessible.

In his remarks, Auwalu said the increase in gas supply would engender job employment and help the country to have energy security.