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The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has raised concerns regarding the escalating costs of liquefied petroleum gas (LPG) in Nigeria. In a statement issued by his media aide, Ekpo noted that despite efforts to stabilize prices, the average cost of LPG has surged from N1,100–N1,250 per kg to N1,525 per kg.
To tackle this issue, Ekpo convened a meeting with key stakeholders in the LPG value chain to discuss the impact of rising prices on Nigerians. He outlined a series of government directives aimed at curbing the situation:
- Short-Term Solution: Starting November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers are required to cease the export of domestically produced LPG. Should they continue exporting, they must import an equivalent volume at cost-reflective prices.
- Pricing Framework: The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) will work with stakeholders over the next 90 days to develop a new domestic LPG pricing framework. This framework will be based on the cost of in-country production, replacing the current reliance on external market prices from regions such as the Americas and Far East Asia.
- Long-Term Solution: Over the next 12 months, the government intends to enhance infrastructure for blending, storing, and distributing LPG. The goal is to ensure that domestic supply is sufficient and prices stabilize before considering any exports.
Ekpo emphasized that these measures are designed to improve availability, ensure affordability, and protect Nigerians from the economic burdens posed by rising LPG prices.