NNPC clarifies reasons behind recent LPG price hike to N2,000/kg

…blames PENGASSAN

By Kunle Sanni –

The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Olufemi Ojulari, has explained that the recent increase in the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, was largely artificial and temporary.

Speaking with journalists on Sunday night after briefing President Bola Tinubu on the company’s operations, Ojulari attributed the brief surge in LPG prices to disruptions caused by the recent industrial action by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).

According to him, the strike, which also affected operations at the Dangote Refinery, led to delays in loading and the movement of products across key facilities for about two to three days. This temporary halt, he noted, created a short-term supply gap in the domestic market.

“The increase you saw was relatively artificial because during the strike, movement and loading were delayed for about two to three days. As a result, distribution was affected, and some marketers who had reserves adjusted their prices upward,” Ojulari explained.

He assured Nigerians that with the resumption of normal operations, prices are expected to stabilize soon.

“Now that things are back to normal, prices should return to what they were before the strike,” he added.

Ojulari also disclosed that the strike led to a significant loss of over 200,000 barrels of oil per day and disrupted gas production, which in turn affected about 1.2 megawatts of power generation. However, he commended the intervention of the Federal Government, led by the Minister of Labour and Employment and the National Security Adviser (NSA), for facilitating dialogue that restored industrial harmony.

The NNPC boss further briefed the President on the company’s production targets, revealing that crude oil output rose to 1.68 million barrels per day in September — the highest in about five years. He expressed optimism that with recent maintenance work completed, production could reach 1.8 million barrels per day by the end of the year.