[By Abigail Philip David]
The Federal Government has announced a halt to the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in a bid to prioritize domestic supply and address the escalating prices. The policy, unveiled by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, will take effect from November 1, 2024.
This decision was conveyed through a statement by the minister’s spokesperson, Louis Ibah, following a high-level meeting convened to discuss the rising cost of LPG and its impact on Nigerians. The price of cooking gas has surged dramatically from N700 per kilogram in June 2023, when President Bola Tinubu took office, to N1,500 per kilogram by October 2024—a 114% increase within 16 months.
To tackle this price hike, the Minister had earlier formed a committee in November 2023, headed by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, with key stakeholders in the LPG value chain. Despite their efforts, the price has continued to fluctuate, reaching an average of N1,500 per kilogram from the earlier range of N1,100–N1,250.
In the latest directive, Ekpo outlined immediate and long-term measures aimed at stabilizing the market. “With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in the country or import equivalent volumes of LPG exported at cost-reflective prices,” the statement read.
Additionally, the Minister tasked the NMDPRA with establishing a new domestic pricing framework within 90 days. This framework will be based on the cost of in-country production, rather than indexing prices to foreign markets, such as those in the Americas or Asia, which have contributed to inflated local prices.
The long-term strategy outlined in the statement includes the development of blending, storage, and delivery facilities within the next 12 months to ensure market sufficiency and price stability, with exports halted until these goals are met.
Minister Ekpo expressed deep concern over the continuous rise in LPG prices and emphasized that these directives are aimed at resolving the crisis and ensuring that Nigerians have access to affordable cooking gas.
