In a bid to curb the soaring cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, the Federal Government has announced a suspension of LPG exports effective November 1, 2024.
This action was disclosed after a meeting in Abuja, convened by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, where stakeholders gathered to discuss solutions to the rising prices that have been burdening Nigerians.
Ekpo expressed deep concern over the continuous increase in LPG prices, which have skyrocketed from an average of N1,100 – N1,250 per kilogram to N1,500 per kilogram in recent months. In an effort to stabilize the domestic market, he directed the Nigerian National Petroleum Company Limited (NNPCL) and local producers to halt all exports of locally produced LPG.
Additionally, any LPG exports that continue must be balanced by equivalent imports, ensuring that Nigerians benefit from cost-reflective pricing, according to Ekpo.
The minister emphasized the need for a new pricing framework that reflects the realities of local production costs, shifting away from the current practice of pegging prices to international markets in regions such as the Americas and Far East Asia.
In a statement released by his spokesman, Louis Ibah, Ekpo tasked the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) with developing this new domestic pricing structure within 90 days. This move is expected to alleviate the economic pressure on Nigerians by indexing prices more accurately to local production.
As part of long-term efforts to stabilize the market, Ekpo revealed plans to develop new facilities for blending, storage, and delivery of LPG within the next 12 months. These facilities are expected to boost the supply of cooking gas and ensure stable, affordable prices for consumers.
The government’s measures aim to protect Nigerians from the ongoing financial strain caused by rising LPG prices while ensuring a steady supply of the product.
