The Nigerian government will collaborate with foreign stakeholders in the liquefied petroleum gas (LPG) business to meet the increasing demands of the cooking gas, the official News Agency of Nigeria reported Friday.

Presidential adviser on petroleum and energy Edmund Daukoru was quoted as saying that Nigeria would fully support any move to ensure availability of the commodity in the interest of consumers. "I believe LPG production should be private sector driven and I look forward to that," Daukoru said.

The Nigerian government had set up a technical committee on revival of LPG in collaboration with the World Bank, he said, adding the government would welcome useful suggestions that could assist in removing bottlenecks associated with LPG production.

According to C. Onitiri, chairman of the Nigerian LGS Association, massive production, importation as well as resuscitation of the Exxon-Mobil jetty in Bonny in Nigeria's southern state of Rivers "will undoubtedly force down the unbearable high cost of the product."

He said ensuring acceptable procedure for common access of LPG depots as well as affecting a waiver of import duty and value added tax (VAT) on LPG would also ensure availability and affordability. Onitiri said a waiver of import duty and VAT on LPG alone was capable of reducing the cost of the product by about 40 percent.

He listed other measures that would ensure availability of LPG to include repair of existing depots, construction of storage facilities and proper functioning of loading facilities.

Onitiri said poor production of LPG in the refineries, inefficient warehousing, inadequate transport network facilities and inadequate power supply contributed to the shortage and high cost of the commodity.

Refilling a home-use ordinary cylinder of LPG in Lagos, the nation's commercial capital, costs 1,800 naira (about 13 US dollars), more than one tenth of an average employee's monthly salary.

Source: Xinhua