Mkpoikana Udoma
Port Harcourt — The Federal Government has halted the export of Liquefied Petroleum Gas, LPG, (cooking gas) in order to address the rising cost of cooking gas in the country.
The Minister of State for Petroleum Resources (Gas) Mr. Ekperikpe Ekpo, issued the directive, effective November 1, 2024, to prioritize domestic supply and stabilize prices.
The move, according to Ekpo, aims to tackle the hardship caused by fluctuating LPG prices, which recently reached over N1,500 per kg.
Additional measures announced by the federal government include, “developing a domestic LPG pricing framework within 90 days; creating facilities to blend, store, and deliver LPG domestically within 12 months.”
The Minister who frowned at the persistent rise in the price of cooking gas and the attendant hardship on Nigerians, said these initiatives would improve LPG availability, stabilize prices, and ease the economic burden on Nigerians.
He said, “Despite previous efforts, including the establishment of a high-level committee led by Mr. Farouk Ahmed, the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority, NMDPRA, to address the issues, prices have continued to fluctuate, recently reaching N1,500 per kg from an average of N1,100–N1,250.
“To address these price increases and the hardship they bring to Nigerians. I have now issued the following directives:
“Effective from November 1, 2024, NNPCL and LPG producers must halt exports of LPG produced in-country or import equivalent volumes at cost-reflective prices.
“NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, focusing on the cost of local production rather than external market indices like those from the Americas or Asia. It is unacceptable that Nigerians pay premium prices for a commodity that we produce in abundance.
“Within 12 months, we will develop facilities to blend, store, and deliver LPG domestically. Exports will cease until the market achieves stability and sufficiency.
“These measures are essential to improving LPG availability, stabilizing prices, and easing the economic burden on Nigerians. Our goal is to ensure that every Nigerian can access affordable cooking gas,” Ekpo said.
