The Federal Government of Nigeria has announced an immediate halt to the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in a bid to prioritize domestic supply. This directive, announced by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, will take effect on November 1, 2024, as part of efforts to tackle the rising cost of gas in the country.
The announcement follows a high-level meeting convened by the minister with stakeholders to address the alarming rise in cooking gas prices, which surged from N700 per kilogram in June 2023 to N1,500 per kilogram in October 2024—a staggering increase of approximately 114% over 16 months.
Despite the establishment of a high-level committee in November 2023, led by NMDPRA Chief Executive Mr. Farouk Ahmed, aimed at addressing these price fluctuations, recent trends have seen prices fluctuate between N1,100 and N1,500 per kilogram.
To mitigate the price crisis, the minister outlined both short-term and long-term strategies. Effective November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and local LPG producers must cease exports of domestically produced LPG or import equivalent volumes at cost-reflective prices.
In addition, Ekpo directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to collaborate with stakeholders to establish a domestic pricing framework within 90 days. This framework will index prices to local production costs instead of relying on external markets like the Americas and Far East Asia.
For a sustainable long-term solution, the statement indicated that within 12 months, the government plans to develop facilities for blending, storing, and delivering LPG, effectively suspending exports until the market stabilizes and achieves self-sufficiency.
Minister Ekperikpe Ekpo expressed deep concern over the continued rise in cooking gas prices, asserting that these directives are crucial steps toward ensuring that Nigerians have access to affordable LPG.
