The Federal Government of Nigeria has announced the suspension of exports of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, effective November 1, 2024. This decision aims to address the escalating costs of cooking gas in the country, which have seen a steady increase in recent months.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement during a stakeholder meeting in Abuja. He highlighted the urgent need to mitigate the impact of rising prices on Nigerian citizens. “With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost-reflective prices,” Ekpo stated.
The Minister also directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to develop a domestic pricing framework within 90 days. This framework is intended to tie LPG prices to local production costs rather than external market indices, aiming to shield Nigerians from inflated prices for a resource that is abundantly produced domestically.
In a statement released by Ekpo's spokesman, Louis Iba, the government outlined a long-term strategy to halt exports until local market stability and sufficiency are achieved. Over the next 12 months, plans will be put in place to enhance facilities for blending, storing, and distributing LPG.
Ekpo expressed concern over the recent surge in cooking gas prices, which have risen from an average of N1,100 to N1,250 per kilogram to as high as N1,500. In response to this issue, a high-level committee led by NMDPRA’s Chief Executive, Farouk Ahmed, was established in November 2023 to explore effective solutions.