The Federal Government of Nigeria has taken a significant step to address the soaring prices of cooking gas by stopping the export of locally produced Liquefied Petroleum Gas (LPG). This decision, announced by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, aims to prioritize domestic supply and mitigate the high costs of cooking gas for Nigerians.
The new policy will take effect from November 1, 2024. According to the minister’s spokesman, Louis Ibah, the decision was made after a high-level meeting with stakeholders in Abuja to tackle the escalating prices and the resulting hardship on citizens. The price of LPG has skyrocketed from N700/kg in June 2023 to N1,500/kg in October 2024, a 114% increase within 16 months.
To implement this policy, the Nigerian National Petroleum Corporation Limited (NNPCL) and LPG producers have been directed to stop exporting LPG produced in the country or import equivalent volumes at cost-reflective prices. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will also engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing prices to the cost of in-country production rather than external markets.
In the long term, facilities will be developed to blend, store, and deliver LPG, with the goal of ending exports until the market achieves sufficiency and price stability within 12 months. The minister expressed deep concern over the continuous price increase and emphasized the need to ensure Nigerians have access to affordable cooking gas.
