The federal government has told Nigerians that it is not only the country that is experiencing an upward surge in the price of cooking gas.
This is as it explained that gas is not a subsidized commodity in Nigeria nor can its price be regulated internally as it is subject to international price fluctuations.
The Minister of State for Petroleum Resources, Chief Timipre Sylva made the submission on Tuesday while speaking with State House correspondents shortly after a meeting with President Muhammadu Buhari at the Aso Rock Villa.
He however added that the government was working hard to bring down the price and cushion the hardship effect on Nigerians.
In his words: “We must understand that cooking gas is not subsidized. It is already a deregulated commodity. So the price of cooking gas is not determined by government or by everybody in the industry. In fact, gas prices are determined internationally.
“And you all are aware that in Europe, today, gas prices have gone up, there was even crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.”
Naija News understands Sylva was at the Villa to introduce CEO, Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), Engr. Faruk Ahmed, and the CEO, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe, to the President.
Meanwhile, the Group Managing Director of the Nigerian National Petroleum Company, Mele Kyari, on Tuesday, hinted that the price of petrol may rise to ₦340 in 2020.
Kyari disclosed this during the presentation of the World Bank Nigeria Development Update, November 2021 edition titled “Time for Business Unusual” in Abuja.
According to the GMD of NNPC, fuel subsidy removal would be effected in 2022.
Kyari who spoke on the increase of prices of cooking gas said it was a demand and supply issue as there is a global challenge on the supply of gas and many countries are now threatened by lack of supply in December.