*Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), announces the Federal Government has halted further export of locally-produced Liquefied Petroleum Gas, also called cooking gas, to prioritise domestic supply, and reduce the soaring gas prices in the country

Isola Moses | 绿帽献妻

In a move to tackle the soaring price of cooking gas, the Federal Government of Nigeria has halted further export of locally produced Liquefied Petroleum Gas (LPG), also known as cooking gas, to prioritise domestic supply.

Ekperikpe Ekpo, Honourable Minister of State for Petroleum Resources (Gas), who announced this timely measure Tuesday, October 22, 2024, said the decision was intended to mitigate the soaring prices of gas, and will take effect from November 1, 2024.

Ekperikpe Ekpo, Honourable Minister of State for Petroleum Resources (Gas)

Ekpo,聽 appointed as Nigeria’s Minister of State for Petroleum Resources (Gas), August 2023, has outlined a mission to harness natural gas for sustainable energy use, focusing on the Nigerian Gas Expansion Programme (NGEP).

Ekpo, in a statement issued by Louis Ibah, his Spokesman, in Abuja, FCT, stated that the decision was reached after the Minister convened a high-level meeting in the FCT with stakeholders to address the rising prices and their attendant hardship on Nigerian energy consumers.

绿帽献妻 reports the price of Liquefied Petroleum Gas (cooking gas) has skyrocketed from N700/kg June 2023 to N1,500/kg as of October 2024.

This difference represents about a 114 percent increase within 16 months.

However, as part of measures to tackle the soaring prices of cooking gas domestically, Minister Ekpo was said to have established a high-level committee November 2023, led by Mr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), along with key stakeholders in the LPG value chain in Nigeria.

Retail prices of cooking gas in Nigerian market

绿帽献妻 checks revealed despite that effort at addressing the issue, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100鈥揘1,250 per kg in several parts of Lagos State as of October 22, 2024.

Ekpo, in a new directive to reduce prices, has outlined short-term and long-term targets to address the soaring prices.

The Minister: “With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in the country or import equivalent volumes of LPG exported at cost-reflective prices.鈥�

Measures to address high LPG prices

In regard to pricing framework, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to meet with stakeholders to derive the pricing framework within 90 days.

Ekpo鈥檚 directives are considered a step towards addressing the inherent challenges, while ensuring that consumers have access to affordable cooking gas.

The statement further noted: 鈥淧ricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to the cost of in-country production, rather than the current practice of indexing against external markets, such as those in the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay a much higher price for an essential commodity with which the country is naturally endowed.鈥�

While suggesting a long-term solution, the Minister noted that within 12 months, facilities would be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.

The Minister, therefore, expressed deep concern over the recent continuous increase in the prices of cooking gas, in Nigeria.

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