In a bid to address the soaring cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, the Nigerian federal government has issued a new mandate requiring domestic producers to halt the export of the commodity. The directive, effective from November 1, 2024, was announced by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, during a meeting with industry stakeholders in Abuja on Tuesday.
The decision comes as Nigerians continue to grapple with rising cooking gas prices, which have caused significant hardship for households across the country. Ekpo emphasized that the suspension of LPG exports is a short-term solution aimed at stabilizing domestic supply and ultimately reducing costs. He stated, “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.”
By prioritizing local consumption over exports, the government hopes to increase the availability of LPG within Nigeria, thereby easing pressure on prices. The move is part of a broader strategy to bring relief to Nigerians facing the economic strain of high cooking gas prices.
During the meeting in Abuja, Ekpo also tasked the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with developing a new pricing framework for LPG. He directed the regulatory body to collaborate with stakeholders to devise a solution within 90 days. The aim is to create a pricing model that reflects current market realities while ensuring affordability for consumers.
The rising price of LPG has been a growing concern in recent months, with many Nigerians finding it increasingly difficult to afford cooking gas for their homes. The federal government’s intervention, which includes both the export ban and a review of the pricing structure, represents a significant step toward addressing this issue.
As the November 1 deadline approaches, the government’s actions will be closely watched to see if they can effectively mitigate the upward trajectory of LPG prices. For many Nigerians, this intervention offers a glimmer of hope that cooking gas will soon become more affordable and accessible.
