FG's Ban on LPG Export Leads to Crash in Cooking Gas Price

Cooking gas depot
Cooking gas depotgoogle

The ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by the Federal Government has resulted in a significant reduction in the commodity's price.

According to LPG dealers, the price of cooking gas has dropped from around N1,500 per kilogram to approximately N900/kg.

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) made this disclosure during a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.

The association's National President, Oladapo Olatunbosun, commended Ekpo for his efforts in ordering the domestication of all LPG produced within the country, which has led to the reduction and stabilization of the product's price in the domestic market.

The ban on LPG export was announced on February 22, 2024, as part of the government's efforts to increase the volume of LPG domestically and reduce prices.

Prior to the ban, LPG producers and international oil companies operating in Nigeria had been exporting large volumes of gas, leading to a jump in prices. The government's intervention has resulted in a significant decrease in the price of LPG, with a 20 metric tonne shipment now costing N15 million, down from N20 million.

At the retail level, the price of LPG has also decreased, with consumers now paying between N900 and N1,000 per kilogram, compared to the previous range of N1,400 to N1,500 per kilogram.

Olatunbosun thanked the Federal Government for heeding the association's plea to address the issue of LPG export, which had been affecting the domestic market. He expressed confidence that with the current price stability, consumers will continue to benefit as the naira gains more value.

In response, Ekpo praised the marketers for their cooperation in bringing down prices to reflect current realities following the ban on LPG export.

Latest Lagos Local News - Lagoslocalnews.com