Electricity tariffs in the country are set to rise as the Federal Government announces an increase in the domestic price of natural gas to $1.5 per 1,000 standard cubic feet.
The increase will represent a 50 per cent increase in the current $1 price for gas to power plants.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Andrew Yakubu, disclosed in Abuja that the move would ensure efficient supply of abundant natural gas to thermal power stations nationwide.
Currently, fertilizer companies pay 90 cents for 1,000 cubic feet of gas while industrial users purchase 1,000 cubic feet of the product at above $2.50.
The price for power producers, who account for about 80 per cent of the domestic gas consumption, was increased about two years ago from $0.1 to $1.0 by the government for the same purpose of encouraging suppliers to sell to power plants.
These prices are, however, below the international market price for gas, which is about $3 per 1,000 standard cubic feet.
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