The Federal Government’s ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has resulted in a significant price reduction from approximately N1,500 per kilogram to around N900/kg, according to LPG marketers on Wednesday.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) made this announcement during a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
On February 22, 2024, The PUNCH reported that the government banned LPG exports to increase its domestic supply and reduce prices. At the time, LPG producers and key industry stakeholders were instructed to cease exporting the commodity following a sharp rise in cooking gas costs.
During the meeting, NALPGAM National President Oladapo Olatunbosun praised Minister Ekpo for his decisive action to retain all domestically produced LPG, which has stabilized and reduced prices in the local market.
Olatunbosun, in a statement by the minister’s media aide Louis Ibah, recalled that during a stakeholders’ forum in February, the association highlighted to the minister that international oil companies operating in Nigeria were exporting large volumes of gas. He argued that if these volumes were available domestically, there would be no need to import LPG at high rates, thus ensuring price stability.
The NALPGAM president expressed gratitude for the government’s intervention, which led to the price of LPG dropping from N20 million per 20 metric tonnes to N15 million. This decrease translated to retail prices falling from N1,400-N1,500 per kilogram to N900-N1,000 per kilogram.
“We appreciate that at our meeting, you (Ekpo) promised to address the export of LPG amid inadequate supply and soaring prices, and you have indeed taken action. Today, we thank you because the export ban has significantly impacted the market, and consumers can attest to this. People who had stopped using gas cylinders due to high prices are returning, and we are confident that as the naira strengthens, consumers will benefit from even better LPG prices,” Olatunbosun stated.
In response, Minister Ekpo lamented Nigeria’s low domestic gas consumption despite being a major producer and assured his guests of President Bola Tinubu’s commitment to expanding gas use nationwide. He commended the marketers for their cooperation in aligning prices with the new market realities post-ban.
“We would not have achieved this progress without your cooperation and support. We aim to ensure that our vast gas resources are available domestically at the right price, in line with President Bola Tinubu’s vision for the sector and the economy,” Ekpo said.
He reiterated the government’s directive for LPG producers to stop exporting the commodity, highlighting recent incentives like the removal of taxes and levies on gas-related equipment imports to boost domestic supply.
“We are in constant dialogue with the regulator, NMDPRA, and producers such as Mobil, Chevron, and Shell. There is hope for positive changes, and our ongoing engagement aims to address the problems comprehensively,” Ekpo added.
