NLPGA Boss Blames LPG Price Fluctuates on Recurring Naira Mismatches Against Global Currencies
President of the Nigeria Liquefied Petroleum Gas Association (NLPGA), Nuhu Yakubu, has said that fluctuations in foreign exchange rates is the reason for the unsteadiness of the price of Liquefied Natural Gas (LPG), popularly known as cooking gas fluctuates in Nigeria.
Speaking during a visit to former President Olusegun Obasanjo in Abeokuta, the Ogun state capital, Yakubu said the uncertainties faced by commodities in the global market is as a result of weakness of the local currency, Naira, before globally rating currencies.
“Once the United States dollar rises, it is only logical that it will affect the retail prices of commodities even in the ordinary market,” Yakubu said.
“But thanks to the Nigeria LNG, there is a dominant supplier in the market, otherwise it would have been worse than this,” he added.
According to him, there could have been some stability in supply and pricing of cooking gas in the country if successive governments had followed the policy initiated by the Obasanjo-led government.
Going down memory lane, Yakubu said that the current supply sustainability was made possible by the blueprint which Nigeria went into effect in 2005.
The NLPGA boss noted that it takes international oil companies and producers of gas to commit a certain volume of their production to domestic use.
However, he revealed that advocacy and talks are ongoing to address all critical issues, adding that there is the need for a private-public sector collaboration in order to stabilize the price of the commodity.
In his reaction, Obasanjo thanked Yakubu and his team for the visit. He therefore promised to present a keynote address on the LPG industry at the industry’s summit next month.