The Federal Government has announced the stoppage of the export of locally produced Liquefied Petroleum Gas (LPG) also known as cooking gas. The measure is to mitigate the price of the gas that has been soaring steadily.
Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said “Short Term Solution: With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost reflective prices.”
This was contained in a press statement which the spokesman to the minister, Louis Iba issued.
In terms of the pricing framework, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to meet with stakeholders in order to derive the pricing framework within 90 days.
The statement said: “Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.”
Proffering a long term solution, the statement added that within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.
The statement noted that the minister expressed deep concern over the continuous increase in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in the country.
Recall that in a bold move to tackle the soaring price of cooking gas, the Gas Minister had established a high-level committee in November 2023, led by the Authority Chief Executive of the NMDPRA, Farouk Ahmed and comprising key stakeholders in the LPG value chain.
However, despite this effort to address the issue, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100 – N1,250 per kg.
“The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike,” the Minister said.
