The Nigerian National Petroleum Corporation (NNPC) has announced plans to reduce the price of Liquefied Petroleum Gas (LPG) in Nigeria.
Mr. Ndu Ughamadu, its Group General Manager, Group Public Affairs Division, in a statement said the reduction of the price would be achieved through the implementation of a new commercial framework, by its Crude Oil Marketing Division (COMD), which would ban the export of propane and butane, two major components used in the production of LPG, popularly known as cooking gas.
NNPC said the export ban would boost supply of LPG to the domestic market, thus resulting in a natural downward slide in the price of the product in the country.
Mallam Mele Kyari, the Group General Manager, COMD of NNPC, in the statement said that currently some of NNPC’s butane and propane entitlements are exported largely due to lack of vessels to make sure that they 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,” Kyari, added.
He further disclosed that the COMD 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.
Kyari said the goal of the COMD in 2019 would be to complete the automation process in the marketing and sale of Nigerian crude oil grades which started in 2017. 0