Price surge: FG bans export of cooking gas

Amid the hike in the price of the Liquefied Petroleum Gas, LPG, also known as cooking gas, the Federal Government has banned the export of the commodity produced in Nigeria.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said this in a statement, expressing worry over the rising cost of the commodity.

The prices of the commodity have increased from an average of N1,100-N1,250 per kg to N1,525 per kg.

According to the statement, Ekpo convened a meeting with key stakeholders in the LPG value chain to address the escalating prices and the hardship they impose on Nigerians.

The minister announced the following directives:

Short-Term Solution: Effective from November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers are to halt the export of LPG produced in the country. If they continue exporting, they must import an equivalent volume at cost-reflective prices.

Pricing Framework: The NMDPRA will engage stakeholders within 90 days to create a domestic LPG pricing framework. The new framework will be indexed to the cost of in-country production, replacing the current system of using external market prices from regions like the Americas and Far East Asia.

Long-Term Solution: Over the next 12 months, the government plans to develop infrastructure for blending, storing, and distributing LPG, with the aim of halting exports until domestic supply is sufficient and prices stabilize.

The minister stressed that the measures were aimed at boosting availability, ensuring affordability, and protecting Nigerians from the economic strain caused by hiking the commodity prices.