In response to the ongoing spike in Liquefied Petroleum Gas (LPG) prices, the Federal Government has announced a ban on the export of cooking gas produced in Nigeria. This decision was communicated by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, through his media aide.
Ekpo expressed deep concern over the continuous increase in LPG prices, which recently surged from an average of N1,100 to N1,525 per kilogram. Despite efforts to address this issue through a high-level committee established in November 2023, prices have remained volatile.
To tackle the skyrocketing costs and the resulting hardships faced by Nigerians, the Minister convened a meeting with key stakeholders in the LPG value chain. Following these discussions, he issued a series of directives aimed at stabilizing prices and ensuring accessibility to cooking gas for the populace:
- Short-Term Solution: Effective November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers are required to halt the export of domestically produced LPG. They will also need to import equivalent volumes of LPG exported at cost-reflective prices.
- Pricing Framework: The Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) will work with stakeholders to establish a domestic LPG pricing framework within 90 days. This new framework will index prices to the cost of in-country production instead of relying on external markets, which have contributed to the higher prices faced by consumers.
- Long-Term Solution: Over the next 12 months, the government plans to develop facilities for blending, storing, and delivering LPG, effectively halting exports until the market achieves sufficient supply and price stability.
Ekpo emphasized that these directives are essential steps toward addressing the challenges in the LPG sector and ensuring that Nigerians have access to affordable cooking gas. The measures aim to improve availability and protect citizens from the economic strain caused by rising LPG prices.