We Have No Control Over Gas Prices -FG

The Federal Government has said it does not have control over the rising cost of gas in the country.

This is according to the Minister of State for Petroleum Resources, Timipre Sylva while addressing State House Correspondent in Abuja on Tuesday.

Sylva was at the State House to introduce to the President the new CEO of Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA.

He said, “We must understand that cooking gas is not subsidized. It is already a deregulated commodity, so the price of cooking gas is not determined by government or by everybody in the industry. In fact, gas prices are determined internationally.

“You all are aware that in Europe today, gas prices have gone up, there was even crisis in Europe relating to gas prices. So the pricing of gas internationally now affects also the price of gas in the country.

“Apart from that, there are some issues around VAT charges on imported gas, and, of course, taxes on imported gas, which we are handling. But of course, quite frankly, these taxes on imported gas, you must also juxtapose it side by side with the local producers of gas.

“So if you incentivize the importance too much, then you will also kill the local industry. And also, you don’t want to incentivize the local industry at the expense of the imports, because if you incentivize the local industry at the expense of the imports, then you will not have enough gas produced within the country.

“So, these are the issues of balancing that the midstream and downstream regulatory authorities are handling and I want to assure you that we are quite concerned. Mr. President also is very concerned. He is aware that the price of gas is high in the market, and we’re doing everything to see how we can bring down the price of gas, especially as we approached the yuletide. “On what the Federal Government was doing to minimize damage in Nembe, Bayelsa State, where there is oil spillage, he said President Buhari had directed that he should visit the community today to assess the situation.

He said: “The spillage in OML 29, we are quite aware of. Unfortunately, it has happened. It is also one of the issues I discussed with the President as minister and he has actually asked us to visit the site to assess the situation and report back.

“Definitely, we are quite concerned with what is happening in Nembe and will be going there very soon tomorrow (today) to go and look at what is happening and report back.

“Mr. President is personally interested and we have discussed it and he said we should go there and come back and report to him because environmental degradation issues are things that we are not going to condone but, of course, we’ll work with the operators of OML 29 to ensure this spillage is brought under control as quickly as possible.”

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