Federal Government Bans LPG Exports As Prices Surge.
The Federal Government has announced a ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, due to the continuing rise in its price within Nigeria. The decision comes amid growing concern over the increasing cost of LPG, which has placed a significant strain on Nigerian households.
Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, conveyed the government’s concerns through a statement issued by his media aide. Despite previous efforts to stabilise prices, such as the establishment of a high-level committee in November 2023, led by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) head, Mr Farouk Ahmed, the cost of LPG has surged from an average of N1,100–N1,250 per kilogram to N1,525 per kilogram.
In a bid to address the situation, Ekpo convened a meeting with key players in the LPG sector, focusing on the challenges posed by the rising prices and their impact on the Nigerian population. Following these discussions, the government issued several directives aimed at bringing relief:
From 1st November 2024, the Nigerian National Petroleum Company Limited (NNPCL) and other LPG producers are required to halt exports of LPG produced in Nigeria. If any exports continue, the producers will be mandated to import an equivalent quantity at prices that reflect domestic production costs.
The NMDPRA has been tasked with collaborating with industry stakeholders over the next 90 days to develop a new pricing framework for LPG. This framework will focus on pricing based on the cost of local production, moving away from the current practice of using international market prices from regions like the Americas and Asia.
The government also outlined a 12-month plan to develop the necessary infrastructure for the blending, storage, and distribution of LPG. During this period, the export ban will remain in place until domestic supply levels are sufficient, and prices stabilise.
Minister Ekpo stressed that these measures are intended to ensure the availability and affordability of LPG, easing the economic pressure on Nigerians caused by the price surge.
