The Federal Government of Nigeria has announced a ban on the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, to ensure a stable domestic supply.
This directive, announced by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, will take effect on November 1, 2024. The decision aims to address the escalating prices of cooking gas, which have surged dramatically over the past year.
In a statement released in Abuja by the minister's spokesman, Louis Ibah, it was revealed that the decision followed a high-level meeting with key stakeholders to discuss the rising costs and their impact on Nigerians.
The price of cooking gas has skyrocketed from approximately N700 per kilogram in June 2023 to N1,500 per kilogram by October 2024, reflecting an alarming increase of about 114 percent in just 16 months.
Despite previous efforts to stabilize prices—including the establishment of a committee led by Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)—the prices have continued to fluctuate. Recently, they rose from an average of N1,100 to N1,250 per kilogram to N1,500.
To combat this issue, Ekpo outlined both short-term and long-term strategies. Effective immediately in November, all LPG producers in Nigeria are required to cease exports or import equivalent volumes at cost-reflective prices.
Additionally, the NMDPRA is tasked with developing a new pricing framework within 90 days that will base prices on local production costs rather than external market rates.
Looking ahead, the government plans to develop necessary infrastructure for blending, storing, and delivering LPG within the next year.