The Federal Government’s ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has led to a significant drop in the domestic price from approximately N1,500 per kilogram to around N900/kg, according to LPG dealers on Wednesday.
During a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) attributed the price reduction to the export ban.
The ban, which took effect on February 22, 2024, was implemented to increase domestic LPG availability and reduce prices. At the time, the government instructed LPG producers and industry stakeholders to cease exports due to rising cooking gas costs.
Oladapo Olatunbosun, National President of NALPGAM, praised Minister Ekpo for his decisive action in ensuring all LPG produced domestically remains within Nigeria. He noted that this policy has significantly reduced and stabilized LPG prices in the local market.
Olatunbosun recalled that during a stakeholders’ forum in February, the association highlighted the issue of international oil companies exporting large volumes of gas, which contributed to high domestic prices. He expressed gratitude for the government’s intervention, which brought the price of a 20 metric tonne LPG truck from N20 million down to N15 million. At the retail level, prices dropped from N1,400-N1,500/kg to between N900-N1,000/kg.
“We appreciate that you (Ekpo) promised to address the issue of LPG exports amidst inadequate supply and high prices, and indeed, you have taken steps to fulfill that promise,” Olatunbosun stated. “Today, we thank you because the export ban has significantly improved the market, and consumers are experiencing the benefits.”
Minister Ekpo criticized the previous situation where Nigeria, a major gas producer, had one of the lowest domestic consumption rates. He assured that President Bola Tinubu is committed to increasing gas penetration across the country and commended the marketers for their cooperation in reducing prices following the export ban.
“We are working towards ensuring that our vast gas resources are available domestically at the right price for the public, aligning with President Bola Tinubu’s vision for the sector and economy,” Ekpo stated.
In February, the government instructed LPG producers to halt exports to boost domestic supply and reduce prices. Ekpo highlighted the removal of taxes and levies on gas-related equipment imports as an incentive to support this initiative.
“We are engaging with critical sectors to ensure no exportation of LPG. All domestically produced LPG must stay within the country, increasing volume and reducing prices,” Ekpo stated. “We are in regular contact with the regulator, NMDPRA, and producers like Mobil, Chevron, and Shell, aiming to resolve these issues comprehensively.”
