FG moves to reduce cooking gas prices, halts exports from Nov 1

The federal government has taken decisive steps to address the rising cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by halting its export starting November 1, 2024. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, expressed concern over the continuous increase in LPG prices, which have surged from an average […]

The federal government has taken decisive steps to address the rising cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by halting its export starting November 1, 2024.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, expressed concern over the continuous increase in LPG prices, which have surged from an average of N1,100 – N1,250 per kg to N1,500 per kg.

In response, the minister convened a meeting with stakeholders in Abuja on Tuesday to find solutions to the escalating prices, which have been causing hardship for Nigerians.

A key measure announced by Ekpo includes directing the Nigerian National Petroleum Company Limited (NNPCL) and local LPG producers to stop exporting LPG produced domestically.

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He further directed that any LPG exported must be matched by an equivalent import at cost-reflective prices.

Ekpo emphasised the need for a pricing framework that better reflects domestic production costs.

A statement by the minister’s spokesman, Louis Ibah, said the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) has been tasked with creating a domestic pricing framework within 90 days.

This framework will move away from the current practice of linking prices to external markets, such as the Americas and Far East Asia, and instead index prices to in-country production costs.

As part of a longer-term solution, the minister revealed that, within 12 months, new facilities would be developed to blend, store, and deliver LPG, to achieve market sufficiency and price stability.

These measures are expected to enhance the availability of LPG and ensure affordability, protecting Nigerians from the economic strain caused by the ongoing price hikes, he added.