The Federal Government has announced the suspension of Liquefied Petroleum Gas (LPG) exports, also known as cooking gas, produced locally. This move, effective November 1, 2024, aims to mitigate the rising cost of cooking gas in Nigeria, which has been steadily increasing.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement during a stakeholder meeting in Abuja, emphasizing the need to address the price surge and its impact on Nigerians. “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 said.
The Minister also tasked the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with developing a domestic pricing framework within 90 days, aimed at linking LPG prices to in-country production costs, rather than external market indices. This shift seeks to protect Nigerians from paying inflated prices for a resource the country naturally produces.
The statement, released by Ekpo’s spokesman, Louis Iba, outlined a long-term solution to end exports until local market stability and sufficiency are achieved. Within the next 12 months, facilities for blending, storing, and distributing LPG will be developed.
Ekpo expressed concern over the continuous rise in cooking gas prices, which recently soared to N1,500 per kilogram from an average of N1,100 to N1,250. To address the issue, a high-level committee led by NMDPRA’s Chief Executive, Farouk Ahmed, was established in November 2023.
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