Kehinde Fajobi
The Federal Government has announced a ban on the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, to focus on increasing domestic supply.
The decision was revealed by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, and will take effect on November 1, 2024.
In a statement from the minister’s spokesperson, Louis Ibah, it was disclosed that the decision followed a high-level meeting in Abuja with stakeholders aimed at addressing the rapidly rising prices of gas, which have led to significant hardship for Nigerians.
According to reports, the price of cooking gas has surged from ₦700 per kilogram in June 2023, around the time President Bola Tinubu took office, to ₦1,500 per kilogram in October 2024, marking an increase of approximately 114% over 16 months.
To combat these rising prices, the minister established a high-level committee in November 2023, led by Mr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), along with other key stakeholders in the LPG sector.
Despite these efforts, gas prices have continued to fluctuate, recently spiking from an average of ₦1,100–₦1,250 per kilogram to ₦1,500.
In his latest directive, Ekpo outlined both short-term and long-term strategies to address these challenges.
He stated, “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.”
Additionally, he instructed the NMDPRA to collaborate with stakeholders to establish a domestic LPG pricing framework within 90 days.
This new pricing model aims to tie the cost of LPG to domestic production rather than relying on international market indices, which have led to higher prices for Nigerians despite local production.
To further stabilise the market, the statement indicated that facilities would be developed within 12 months to blend, store, and deliver LPG, halting exports until there is sufficient supply and price stability.
Ekpo expressed his deep concern regarding the ongoing increase in cooking gas prices and highlighted that his directives are steps towards overcoming these challenges to ensure that Nigerians have access to affordable cooking gas.