Monday , 5 June 2023

NNPC to crash price of cooking gas, stop export of propane, butane

PLANS are underway for the Nigerian National Petroleum Corporation (NNPC) to crash the price of of Liquefied Petroleum Gas (LPG), also known as cooking gas through effective implementation of commercial framework that would halt the export of propane and butane which are major components in the production of the product .

The Corporation explained this in a statement on Thursday by its Group General Manager, Group Public Affairs Division, Ndu Ughamadu, that the move to stop the export of propane and butane which is anchored by the Crude Oil Marketing Division of the Corporation would enable the Corporation boost supply of LPG to the domestic market thereby leading to a natural downward slide in the price of the product in the country.

The NNPC spokesman quoted Mallam Mele Kyari, the Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, as saying: “Currently some of our butane and propane entitlements are exported largely due to lack of vessels to make sure that these things come into the domestic markets and the absence of a commercial framework. What we are going to do is to make sure we put the right commercial framework in place so that those exports are converted into domestic consumption”.

Mallam Kyari who disclosed this at a strategy session said the Division was working in concert with stakeholders to create the enabling environment for in-country production of LPG and cessation of export of the country’s equity butane and propane entitlements due to absence of in-country vessels for transport and other considerations.

He said that the goal of the Division in 2019 is to complete the automation process in the marketing and sale of Nigerian crude oil grades which teed-off in 2017, noting that all hands must be on deck to achieve 100 percent, end-to-end conclusion of the process.

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