LPG price surge threatens President Buhari’s gas campaign

President Mohammadu Buhari’s efforts at promoting more use of gas in Nigeria may not be achieving its targeted goal, as price of Liquefied Petroleum Gas also known as cooking gas has surged to a record high across the country, forcing some consumers to go in search of alternatives.

Findings by SweetcrudeReports showed that a 12.5kg cylinder which was sold in Lagos for atleast N4, 500 in June, is now being sold at between N5500-N6000 at different parts of the state. Riding particularly on the back of recent devaluation of the naira, calculation puts per kilogramme of the product at N500.

In May, the Central Bank of Nigeria devalued the naira as it adopted the NAFEX exchange rate of N410.25 per dollar as its official exchange rate, raising the naira to as high as 503/$1 at the parallel market.

The Buhari administration had declared year 2020 and beyond a decade of gas in a bid to draw citizens attention to embracing more use of gas. Nigeria’s gas reserves recently hit 206.53 trillion cubic feet, the Department of Petroleum Resources, DPR’s Director of DPR, Auwalu Sarki had declared during the recently held Nigeria International Petroleum Summit in Abuja. Contributions to the country’s reserve grew from 10 million barrels in 2005 to about 62 million barrels in 2020, Auwalu said.

Data from the National Bureau of Statistics, NBS said as of June, a 12.5kg cooking gas rose to N4, 289 from N4, 288 in May. As of June, states with the lowest average price for 12.5kg LPG were Zamfara (N3, 736), Kaduna (N3,841), and Imo (N3, 911), while those with highest 12.5kg price were Enugu (N4, 811), Abuja (N4, 780), and Cross River (N4, 650).

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Source: SweetCrudereports

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