Nigeria LPG Consumption Exceeds Target in Q1 2020
The Petroleum Products Pricing Regulatory Agency (PPPRA) is pleased to announce that the Country has exceeded its Liquefied Petroleum Gas (LPG) Consumption target for the month of January 2020.
As a custodian of petroleum products data bank, the Agency provides reliable data for all petroleum products operations in the country (imports and local) in line with her mandate number three (3) of the PPPRA Act 2003.
According to government’s priority objective of attaining Five (5) million MT of LPG consumption by the year 2022, which puts the national consumption target at 83.33 thousand MT per month from 2018 to 2022 estimated, Nigeria has recorded 89.91 thousand MT LPG utilization in the month of January 2020 with a positive variance of 7.9% above the targeted estimated figure.
Furthermore, the Federal Government has demonstrated its commitment to gas revolution priority by constituting and inaugurating the National Gas Expansion Programme (NGEP) Committee to drive the deepening of LPG Penetration as well as Compressed Natural Gas (CNG) Auto-Gas Utilisation among other gas utilization objectives in collaboration with all relevant stakeholders.
It will be recalled that over the past two (2) years, Domestic LPG Consumption has steadily been on the upward swing.
This upsurge is attributed to the following reasons:
- The impact of federal government policy and programme on deepening LPG penetration nationwide.
- Increased awareness and utilization of LPG in the domestic economy.
- Improved performance of private sector operators in the products supply and distribution chain.
- Entrance of new players (investors) in the sector as a result of the enabling environment created.
- Inclusion of new LPG storage and reception facilities in the NLNG domestic Supply chain.
Given the current trend, the Federal Government’s target of 5 million MT by 2022 is achievable if the current tempo of sensitization and coordination is sustained and improved upon by the government, regulators, and industry players.
The Agency is committed to the realization of this objective and will continually strive to ensure the sustenance and improvement of the enabling commercial environment accordingly.