The Federal Government has announced the suspension of exports of locally produced Liquefied Petroleum Gas (LPG), also known as cooking gas, effective November 1, 2024. This decision aims to address the rising costs of cooking gas in Nigeria.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement during a stakeholder meeting in Abuja, highlighting the need to combat the price surge affecting Nigerians. “Starting November 1, 2024, NNPCL and LPG producers must halt LPG exports or import equivalent volumes at cost-reflective prices,” Ekpo stated.
He also directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to create a domestic pricing framework within 90 days, linking LPG prices to local production costs instead of external market prices. This change aims to shield Nigerians from inflated costs for a domestically produced resource.
The statement, issued by Ekpo’s spokesman, Louis Iba, outlined a long-term plan to halt exports until local market stability is achieved. Over the next year, facilities for blending, storing, and distributing LPG will be established.
Ekpo expressed concern over the sharp increase in cooking gas prices, which recently climbed to N1,500 per kilogram, up from an average of N1,100 to N1,250. In response, a high-level committee led by NMDPRA’s Chief Executive, Farouk Ahmed, was formed in November 2023 to tackle the issue.
