Cost of Living Crisis: We’re Concerned About Sharp Decline in LPG Consumption, Says Association President Ekundayo

MD of Asiko Energy and Pres. Of Nigerian Liquified Petroleum Gas Association (NLPGA), Mr. Felix Ekundayo, has expressed concern with the sharp decline in Liquefied Petroleum Gas LPG consumption and requests proactiveness from government to intervene.

In an interview with ARISE NEWS on Wednesday, Mr. Ekundayo said, “Even though the cost of the gas hasn’t gone up, the ability to buy it has reduced, and one of the things people tend to sacrifice early is expenditure on energy. They will find alternatives to use.

“It is a concern for us. We saw, in the first quarter of this year with the Naira swap or change, a sharp decline in LPG consumption. People were just not buying.”

Mr. Ekundayo emphasized the need for government to be actively involved in the energy dialogue. He stated, “Dialogue with government will be good but dialogue only gets you so far. Dialogue means you are engaged, but proactive action is far more important. We have dialogued with government in the past, but that didn’t go beyond dialogue.

“There are already enough institutional systems in place that can grow gas demands in this country four folds in the next five years.”

He added, “The biggest beneficiary of gas utilization in Nigeria is the government.

“It’s always a bit of a wander why we don’t get more traction in these conversations. We should dialogue, plan and make follow-up actions.”

Ekundayo also spoke on the possibility of energy harmonization to reduce the unnecessary tension between LPG and CNG (compresses natural gas).

“There are actually two categories of fuel that we move around: natural gas and LPG, broadly speaking.

“We represent the LPG industry, there are Nigerian gas associations that represent the natural gas industry, but we recognize that there is this tension created which is unnecessary. They are related products, so CNG is going to be part of the energy mix. LNG will be part of the energy mix, PNG, but they are not the only products out there in the energy mix that Nigeria needs.”

Ekundayo also stated the need to understand the necessary mix of energy needed for each location in Nigeria; a mix that will be cost-efficient and affordable for consumers depending on their location.

To lessen the effects of the state’s elimination of fuel subsidies, Ogun State Governor Dapo Abiodun disclosed that steps have already been initiated by the state government to convert buses from diesel to CNG.

Frances Ibiefo

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