The Federal Government has banned the export of Liquefied Petroleum Gas (LPG), also known as cooking gas, produced in Nigeria, as the price of the commodity continues to soar.
The Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, expressed concern over the rising cost of LPG in a statement issued by his media aide.
Despite efforts to stabilize prices, 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, prices have spiked from an average of N1,100-N1,250 per kg to N1,525 per kg.
The statement highlighted that Ekpo convened a meeting with key stakeholders in the LPG value chain to address the escalating prices and the hardship they impose on Nigerians.
As part of the government’s efforts to curb the situation, the Minister announced the following directives:
Short-Term Solution: Effective from November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers are to halt the export of LPG produced in the country. If they continue exporting, they must import an equivalent volume at cost-reflective prices.
Pricing Framework: The NMDPRA will engage stakeholders within 90 days to create a domestic LPG pricing framework. The new framework will be indexed to the cost of in-country production, replacing the current system of using external 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 blending, storing, and distributing LPG, with the aim of halting exports until domestic supply is sufficient and prices stabilize.
The Minister emphasized that these measures are aimed at improving availability, ensuring affordability, and protecting Nigerians from the economic strain caused by rising LPG prices.
(VANGUARD)
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