FG to stop cooking gas exports effective November 1
The Federal Government has banned the export of Liquefied Petroleum Gas (LPG), also known as cooking gas, produced in Nigeria, as the price of the commodity continues to rise.
The minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo made the announcement while expressing concern over the rising cost of LPG.
This information was contained in a statement issued by the spokesman for the Minister, Louis Ibah, in Abuja on Tuesday, 22nd of October, 2024.
The decision was reached after the minister convened a high-level meeting in Abuja with stakeholders to address the skyrocketing prices and their attendant hardship on Nigerians.
According to him “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.”
In terms of the pricing framework, the minister directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority to meet with stakeholders to derive the pricing framework within 90 days.
The statement added, “Pricing 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.”
Proffering a long-term solution, the statement revealed that within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.
The statement noted that the Minister expressed deep concern over the continuous increase in the price of Liquefied Petroleum Gas, popularly known as cooking gas, in the country; hence his directives towards addressing the inherent challenges and ensuring that Nigerians have access to affordable cooking gas.
