Techno Oil boss, Obi calls for FG’s intervention in rising price of cooking gas

The Federal Government has been called upon to intervene by stopping the rising price of cooking gas in the country.

The Managing Director, Techno Gas Ltd., Mrs. Nkechi Obi, made the call during a panel session on the Nigerian Content Midstream and Downstream Oil and Gas Summit held in Lagos on Tuesday.

The session, entitled: “Gas as a Catalyst for Sustainable Economic Development: The Role of Nigerian Content,” was organised by the Nigerian Content Development Board (NCDMB).

Mrs. Obi said the domestic consumption of cooking gas, also known as LPG, had risen to about 1.2 million metric tons per annum, adding that the target of the country to attain five million metric tons in the next few years, was being threatened by the rising cost of the product as over 60 per cent of the product was being imported by marketers.

According to her, what has been responsible for the final price of gas in the market include: International gas pricing, access to foreign exchange (forex), import duties, freight charges and other costs.

Mrs. Obi, who stated that the domestic demand for cooking gas had dropped because of the rising cost which was eroding the gains recorded in gas penetration in the country, condemned the continued importation of cooking gas cylinders into the country, pointing out that this has safety implications apart from negative impact on businesses of indigenous manufacturers.

The Techno Oil boss then advised the Federal Government to establish a gas cylinder ownership exchange programme that will confer ownership of cylinders on companies instead of individuals.

In his speech on the occasion, the Managing-Director, ANOH Gas Processing Company Limited, AGPC, Mr. Okechukwu Mbah, disclosed that the company’s gas plant at Ohaji/Egbema Local Government Area of Imo State was nearing completion, adding that when completed, the plant would process 300 million standard cubic feet of gas per day and help to stabilise the price of cooking gas in the domestic market.

According to Mbah, the firm is owned by Seplat Plc, the parent company of AGPC and the Nigerian Gas Company, a subsidiary of the Nigerian National Petroleum Company (NNPC) Ltd., in a 50-50 partnership stake.

Mbah said: “Our expectation is that we will be able to stabilise the price of LPG in that region and promote the growth of LPG utilisation in the country,”

For a better society