FG stops cooking gas exports, prices to drop

In a bid to stabilize the skyrocketing price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, the Federal Government has announced plans to suspend the export of the commodity, focusing instead on meeting domestic demand.

This decision, aimed at addressing the continuous rise in gas prices, was disclosed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo. He announced that the new policy will take effect from November 1, 2024, during a high-level meeting with key stakeholders in Abuja.

The meeting was organized to tackle the hardship brought on by the sharp increase in cooking gas prices, which have surged from N700/kg in June 2023 to N1,500/kg in October 2024—a 114% hike within 16 months.

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According to a statement from Louis Ibah, the minister’s spokesman, Ekpo emphasized that the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers must stop exporting locally produced LPG or import equivalent volumes at cost-reflective prices. This directive is part of the minister’s broader strategy to bring relief to Nigerians grappling with the high cost of this essential commodity.

Additionally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been tasked with developing a new domestic pricing framework for LPG within 90 days, focusing on aligning prices with the cost of in-country production rather than international market indices.

To ensure long-term stability, the government also plans to build facilities for blending, storage, and distribution within 12 months, ceasing exports until the market achieves balance and price control.