The Federal Government has banned the export of Liquefied Petroleum Gas, commonly known as cooking gas, as prices continue to increase across the country.
The announcement was made yesterday by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, in a statement issued by his media aide.
Minister Ekpo expressed deep concern over the rising cost of LPG, which has seen prices jump from N1,100 – N1,250 per kilogram to N1,525 per kilogram recently. To address the issue, the minister had earlier set up a high-level committee in November 2023, led by the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority, Mr. Farouk Ahmed, and involving key stakeholders in the LPG supply chain.
Despite these efforts, prices have remained unstable, prompting further action. The Minister convened a meeting with stakeholders and issued new directives aimed at curbing the price hikes.
“To combat this,” the statement explained, “NNPCL and LPG producers are to stop exporting LPG produced in the country starting from November 1, 2024. If they do export, they must import equivalent volumes at cost-reflective prices.”
Additionally, the government plans to create a new pricing framework for domestic LPG within 90 days. “NMDPRA will engage stakeholders to develop a pricing system based on the cost of local production, rather than linking prices to foreign markets like the Americas and Far East Asia,” Ekpo said.
In the long term, the government plans to develop facilities for blending, storing, and distributing LPG. This is expected to end exports until there is enough supply to meet domestic needs and stabilize prices.
Ekpo stressed that these measures aim to “improve availability and ensure affordability” to protect Nigerians from the economic hardship caused by the rising LPG prices. The government is committed to making cooking gas affordable for all citizens.
