Following the sharp rise in the price of Liquefied Petroleum Gas (LPG) also called Cooking gas, the media aide of the Minister of state for Petroleum Resources (Gas), Ekperikpe Ekpo has announced that the Federal Government has banned the export of the petroleum product.
This was released in a statement on Tuesday as the Minister voiced concerns about the surging LPG prices.
This is as previous efforts, including the formation of a high-level committee in November 2023 led by the Authority Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, still did not stop the price of LPG from rising from an average of N1,100–N1,250 per kg to N1,525 per kg.
The statement also revealed that Ekpo held a meeting with key players in the LPG value chain to address the situation, which is placing a significant burden on Nigerians.
As part of the government’s intervention, the Minister announced several key measures:
Short-Term Solution: Starting November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and local LPG producers are to cease exporting LPG produced within the country. Should they continue to export, they will be required to import the equivalent volume at cost-reflective prices.
Pricing Framework: Over the next 90 days, the NMDPRA will work with stakeholders to develop a new domestic pricing framework for LPG. This framework will be based on the cost of in-country production, moving away from the current practice of using international market prices from regions like the Americas and Far East Asia.
Long-Term Solution: Over the next 12 months, the government plans to develop infrastructure for the blending, storage, and distribution of LPG. Exports will remain halted until domestic supply meets demand and prices stabilize.
These steps, the Minister emphasized, are intended to ensure that LPG is available at affordable prices, reducing the financial burden on Nigerians.
