MAN Concerns Over Proposed New Gas Price
GILBERT EKUGBE
The Manufacturers Association of Nigeria (MAN) has expressed concerns over the plan of gas franchisers to increase the price of gas in the country.
Indeed, the manufacturers stated that the sector already beset with myriad of challenges, cannot afford to accommodate any increase in the price of gas.
The Director-General, MAN, Segun Kadir, represented by the Director, Corporate Communications, MAN, Ambrose Oruche, at a gas interactive session stated that the association has expressed it’s concerns to the federal government, but all complaints have fallen on deaf ears.
In his words, “We have cried out to the government and nothing yet has been done so far. We have a situation where gas franchises are threatening further increase in the price of gas. We have to put a stop to this. We need a new regulation that would regulate the gas industry.”
He also called on the need for manufacturers to be classified as a strategic industry under the gas master plan, urging the government through the Ministry of the Petroleum Resources to suspend ant gas increase.
He stated that many jobs would be threatened if the price of gas is increased, adding that some manufacturing outfits have already closed shops due to the harsh operating environment in the country.
“After conducting a survey, we observed that the energy cost accounts for over 40 per cent of the cost of production. This is disheartening, so any gas price increase would only impact negatively on our operations,” he added.
Also speaking at the event, the former Senior Technical Adviser to the immediate Minister of State for Petroleum, Mr. Timothy Okon, has stated that a new regulation will be formulated in June this year to address issues bothering around gas pricing, monopoly and licensing.
He said the new legislation would also address structural issues in the nation’s gas industry.
He added: “We do not anticipate the government fixing the price of gas. It is not the role of the State, but what we expect is that commercially derived pricing arrangement such as the Export Parity Price (EPP) which is not set by the government will form the basis of the pricing while the pricing formula will now be in the regulation.”
He pointed out that differential pricing is at the heart of aggregation, stressing that without differential pricing, gas suppliers will have difficulties to supply gas, there will be a preference to supply gas only to certain sectors and we want to ensure that those who need gas get it at a market based price and not a price to be fixed.
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