Victor EzejaAs part of measures to stem the tide of soaring prices of Liquefied Petroleum Gas (LPG) also known as cooking gas, the Nigerian government has banned export of locally produced one with effect from 1 November 2024.
The directive was issued by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, who convened a stakeholders meeting in Abuja on Tuesday to address the persistent increase in price of cooking gas across the country and its contribution to the hardship Nigerians are facing.
Join our WhatsApp ChannelIn a statement posted on his X handle, the minister, who noted that it is a short action, emphasised the need to prioritise domestic supply to ease the burden of rising costs on Nigerians.
He expressed concerns that despite efforts to address the issues of rising price, it has continued to fluctuate, recently reaching N1,500 per kg from an average of N1,100–N1,250.
Ekperikpo disclosed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will engage stakeholders to create “a domestic LPG pricing framework within 90 days, focusing on the cost of local production rather than external market indices like those from the Americas or Asia.”
READ ALSO: More Woes For Nigerians As Cooking Gas Price Rises By 70%
The minister declared as unacceptable, the fact that Nigerians pay premium prices for a commodity that is produced locally in abundance.
He further revealed other long-term plan to boost gas supply and stabilize prices which include creating a facilities to blend, store and deliver LPG locally within 12 months.
“Within 12 months, we will develop facilities to blend, store, and deliver LPG domestically. Exports will cease until the market achieves stability and sufficiency. These measures are essential to improving LPG availability, stabilizing prices, and easing the economic burden on Nigerians. Our goal is to ensure that every Nigerian can access affordable cooking gas,” the minister stated.
Prime Business Africa had reported that cooking gas price surged by 70 per cent in the last one year.
Marketers have also warned that the price of cooking gas may soar above the current level by December if the federal government does not intervene to control the activities of gas terminal owners.
Experts have identified various responsible for soaring cost of cooking gas including high exchange rate due to cost of imports and lack of bulk storage terminals.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
