The Federal Government of Nigeria has announced the suspension of the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, effective November 1, 2024.
This decision aims to curb the skyrocketing prices of the essential commodity and alleviate the economic burden on Nigerians.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, revealed this development during a meeting with stakeholders in Abuja.
He stated that LPG producers, including the Nigerian National Petroleum Company Limited (NNPCL), are required to halt exports of in-country-produced LPG or import an equivalent amount at cost-reflective prices.
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Ekpo’s directive comes in response to the sharp rise in LPG prices, which have recently surged to as much as N1,500 per kilogram, up from the previous average of N1,100–N1,250.
He emphasized that immediate action was necessary to stabilize prices and ease the hardship faced by Nigerian households.
The Minister also tasked the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with engaging stakeholders to establish a domestic pricing framework within 90 days.
The new framework will link LPG prices to in-country production costs, rather than external markets like the Americas and Far East Asia, which have been driving up local prices despite Nigeria’s substantial LPG production.
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Ekpo further outlined a long-term strategy, stating that over the next 12 months, the government will develop facilities for blending, storing, and delivering LPG.
This move is expected to eliminate the need for exports until the domestic market achieves sufficiency and price stability.
The Minister expressed concern over the persistent price hikes, despite the establishment of a high-level committee in November 2023 to address the issue.
The committee, led by NMDPRA Chief Executive Farouk Ahmed, has been working with key stakeholders in the LPG value chain to find solutions to the pricing crisis.
This latest measure is seen as a significant step towards ensuring that Nigerians can access affordable cooking gas, a vital commodity for households across the country.