BY SEBASTINE OBASI AND MICHAEL EBOH & KUNLE KALEJAYE

LAGOS—Mixed reactions have trailed the planned 50 per cent hike in the price of gas by the Nigerian National Petroleum Corporation, NNPC, as some respondents who spoke to Vanguard condemned the planned hike while others say it is a positive development.

“The planned hike is irrational, absurd and insensitive. Gas utilisation for power generation, industrial and domestic cooking usage should have been marketed as relief to Nigeria, compared to gas that is being flared at the risk of generating income, and thereby, bringing an end to the hazardous impact to the ecosystem and human health for over 50 years of petroleum exploration and production,” said Mr. Bayo Olowoshile, General Secretary, Petroleum and Natural Gas Senior Staff Association of Nigeria, PENGASSAN, umbrella body for senior staffers in the oil industry.

Olowoshile, in an interview with Vanguard, noted that instead of the hike, there should be a welcoming means to all to discourage and deter deforestation and desertification and to attract the bulk of the masses that can barely afford a price hike of kerosene.

He said: “The understanding of the masses is that they should be enlightened to embrace gas as safer alternative.

“Poverty and pestilence is currently a challenge as government now has to play key role to trigger industrialisation and prompt job creation without which it means more hardship and pressure, state of hopelessness and loss of faith to the systems thus raising the propensity for frustration and anti-social tendencies.”

On his part, Mr. Joe Ezigbo, Managing Director, Falcon Petroleum Limited, a major gas producer in the country said the increase is insignificant.

According to him, the so called increase is completely nothing, saying that if one figures out the amount paid for petrol and diesel, one will know that the increase is minimal.

“We need to educate our people on this. It will encourage gas producers to produce more. When you produce petrol and gas, there is tendency for petrol to pay for gas price,” he said.

He said that the proposed price of $1.50 is still nothing compared with the price of gas worldwide.

“The anticipated electricity tariff will not be much as it will still be cheaper than the use of generator to power houses. “Despite the increase, it is still not economical for gas producers. It is nothing compared with the price worldwide. More gas usage will remove the fume and noise pollution associated with generators,” he said.

Also speaking, Mr. Dayo Adeshina, President, Nigeria Liquefied Petroleum Gas Association, said the planned hike will have a multiplier effect on the economy.

According to him, one of the multiplier effects is an increase in electricity tariff.

His words: “This means that Generation Companies will buy natural gas to fire their plants at a higher rate from International Oil Companies, IOCs.

“In turn the GENCOs will sell whatever they have generated to Distribution Companies at a higher price in other to make profit and remain in business.”