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Nigeria to crash LPG price, grow domestic consumption

By Yange Ikyaa

The Nigerian National Petroleum Corporation (NNPC) is set to implement an effective commercial framework that would halt the export of propane and butane, which are major components in the production of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in Nigeria.

The Corporation explained in a press release 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 help boost LPG supply to the domestic market, thereby leading to a natural downward slide in the price of the product in the country.

The NNPC spokesman quoted the Group General Manager, Crude Oil Marketing Division (COMD) of the Corporation, 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 market 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 said his 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.

The COMD GGM further explained 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.