The Federal Government stops the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, as part of efforts to stabilize the soaring prices. The suspension takes effect on November 1, 2024.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, announces that this is a short-term solution to address the rising cost of LPG. He states, “Starting November 1, 2024, the Nigerian National Petroleum Corporation Limited (NNPCL) and local LPG producers must stop exporting gas produced in-country, or alternatively, import equivalent volumes of LPG exported at cost-reflective prices.”
Ekpo convenes a meeting with stakeholders in Abuja to tackle the increasing prices and the resulting hardship on Nigerians. This information is included in an official statement by his spokesperson, Louis Iba.
The Minister directs the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to collaborate with stakeholders and develop a domestic pricing framework within 90 days. This framework will index the price of LPG to domestic production costs, moving away from the current practice of linking it to external markets like the Americas or Far East Asia, ensuring fairer pricing for Nigerians.
Looking at a long-term solution, Ekpo outlines plans to develop facilities within 12 months for blending, storing, and distributing LPG. He also announces the cessation of LPG exports until the market achieves stability and sufficiency.
Despite ongoing efforts, LPG prices continue to rise, now fluctuating between N1,100 and N1,500 per kilogram. Ekpo’s directives aim to resolve these issues and provide Nigerians with more affordable cooking gas.
