Oil & Energy
Cooking Gas Price Increases By 61% …NALPGAM Warns Against Panic Buying
The price of 12.5kg of cooking gas rose by 61 per cent to N9,906 in September 2022 from N6,165 in September 2021.
The National Bureau of Statistics (NBS) disclosed this in its report on Liquefied Petroleum Gas (cooking gas) Price Watch for September 2022.
In its state profile analysis, the Bureau stated that Cross River State recorded the highest average retail price for the refilling of a 12.5kg cylinder of the product with N10,937, followed by Kogi State with N10,760 and Oyo State with N10,724.
Conversely, the lowest average price was recorded in Yobe State with N8,350, followed by Katsina and Taraba States with N8,545 and N8,026 respectively.
Analysis by zone showed that the South-West recorded the highest average retail price for refilling a 12.5kg cylinder at N10,320, followed by the South-South at N10,202, while the North-East recorded the lowest price at N9,300.
Due to rising prices, coupled with the recent force majeure announcement by Nigeria Liquefied Natural Gas Limited, the Nigerian Association of Liquefied Petroleum Gas Marketers cautioned Nigerians against panic buying.
Its President, Oladapo Olatunbosun, made the appeal in a statement against the backdrop of NLNG’s declaration of force majeure on its gas facility due to flood.
Olatunbosun said cooking gas consumers should not panic about a possible scarcity of the product as a result of the force majeure
“Based on information reaching the association, the NLNG has not shut down its production facility in Bonny as rumoured,” he stated.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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