FG planning new model to equalise gas prices across Nigeria – Kachikwu

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The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has disclosed that the federal government would work out a new gas pricing and supply model – likely to be the same type adopted by it to ensure equal pump price for petrol across Nigeria, to get gas to all parts of Nigeria, especially the northern states, THISDAY reports.

Kachikwu, stated this in Abuja and said that the government would adopt a price equalisation model to ensure that gas was supplied at equal and competitive rates to industries and other end users across the country. He noted that the price equalisation plan would be targeted at states in the north where he said industries were likely to fold up because of high cost of gas supplies to them.

He further explained: “Obviously, we are going to be looking at the (Petroleum Equalisation Fund) PEF type model – how do we ensure that gas is provided both in the north and south at about the same pricing model because right now most of the industries in the north are dying because of their inability to provide power quite frankly to some of the industries there at competitive prices.”