The Nigerian National Petroleum Corporation (NNPC) on Thursday unveiled plans to cut the price of Liquefied Petroleum Gas (LPG), also known as cooking gas in Nigeria.
According to a statement by the corporation, the cutting of the price would be achieved through the implementation of a new commercial framework, which would ban the export of propane and butane, two major components used in the production of LPG.
NNPC, in the statement by its Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, explained that the plan to stop the export of propane and butane would be implemented by its Crude Oil Marketing Division (COMD).
According to it, 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.
The statement quoted the Group General Manager, COMD of NNPC, Mallam Mele Kyari, as saying that: “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,” 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.