Nigeria Set to Review Domestic Gas Pricing
The Nigerian government has muted plans to review the prices of gas consumed across the country. Minister of State for Petroleum Resources, Timipre Sylva, said there was a need to have an appropriate pricing system, as this would be to the advantage of ordinary Nigerians and industries, and would boost the country’s gas sector.
He said the move would also help deepen the use of liquefied petroleum gas, also known as cooking gas, as well as compressed natural gas (CNG). He explained in a statement on Tuesday that the Nigerian government by his move intends to shift motorists in the country from the use of petrol to the use of CNG in their respective vehicles.
In a statement issued by the ministry, Sylva said the government would continue to push for the use of gas for cooking and in automobiles in Nigeria He said it is the plan of the federal government to review the country’s domestic gas pricing framework at the inauguration of a committee that would focus on gas sector review in Nigeria.
According to him, a committee has been set up by the ministry to evaluate and review gas prices nationwide in order to align with the current economic realities.
Sylva recently told journalists in Abuja that gas penetration in Nigeria was low because the initial capital outlay to be spent by any prospective gas user was high. This, according to him, was why the government decided to come up with the initiative of creating micro gas distribution centres, where cylinders could be rented by users.
The minister had further noted that the possible hike in petrol price in the near future following the rise in global crude oil prices was another reason why Nigerians should switch from petrol to gas.
Sylva explained that with a liberalised oil sector, the cost of petrol would continue to fluctuate, adding that since Nigeria was more of a gas country, it would be better for citizens to use the abundant gas resources located across the country.
Chibisi Ohakah, Abuja