The Federal Government has barred the exportation of locally produced Liquefied Petroleum Gas (LPG), also known as cooking gas, to prioritize domestic supply.
This move, announced on Tuesday by Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, is aimed at tackling the high gas price in Nigeria, which has skyrocketed by 114% since June 2023.
According to Ekpo, “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.”
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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been directed to create a domestic LPG pricing framework within 90 days, indexing prices to local production costs rather than external markets.
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The decision was made after a high-level meeting with stakeholders to address the soaring price and its impact on Nigerians.
The price of cooking gas has risen from N700/kg in June 2023 to N1,500/kg in October 2024.
Despite efforts to address the issue, prices have continued to fluctuate.
In the long term, the government plans to develop facilities to blend, store, and deliver LPG within 12 months, ending exports until the market achieves sufficiency and price stability.
Ekpo who expressed deep concern over the continuous price increase, emphasized the government’s commitment to ensuring Nigerians have access to affordable cooking gas.
