The Federal Government has banned export of locally produced Liquefied Petroleum Gas (LPG) also known as cooking gas, as the price of the commodity continues to soar.
By Emma Ogbuehi
The Federal Government has banned export of locally produced Liquefied Petroleum Gas (LPG) also known as cooking gas, as the price of the commodity continues to soar.
By the measure, the government aims to mitigate the rising cost of the product. Minister of State Petroleum Resources (Gas) Ekperikpe Ekpo, who made the disclosure in a statement by his spokesman, Louis Iba, noted that with effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost reflective prices.
The release added that Ekpo has convened a meeting in Abuja with stakeholders to address the skyrocketing price and its attendant hardship on Nigerians.
In terms of the pricing framework, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to meet with stakeholders to derive the pricing framework within 90 days.
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The statement reads: “Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.”
The statement added that within 12 months, facilities will be developed to blend, store and deliver LPG, ending exports until the market achieves sufficiency and price stability.
It noted that the Minister expressed deep concern over the continuous increase in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in the country.
It will be recalled that in a bid to tackle the soaring price of cooking gas, the Minister established a high-level committee in November 2023 led by the Authority Chief Executive of the NMDPRA, Mr. Farouk Ahmed with key stakeholders in the LPG value chain.
However, despite this effort to address the issue, prices have continued to fluctuate. Survey by TheNiche Correspondent, indicated the product has jumped in price to N1,500 per kilogram, with 12.5kg cylinder refill rising from the official N15,552.56 in August to N18,750 actual market cost in October, a difference of N3,198.
In Abuja at the weekend, the price for refilling a 12.5kg cylinder rose 41.6 per cent to between N17,000 and N18,750 in different areas, after going for N11,735 in January and N12,000 in July.