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Nigeria Stops Cooking Gas Exports to Tackle Price Surger

F.Adenike

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has announced a ban on the export of cooking gas. This directive, effective from November 1, mandates the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and LPG producers to cease exporting LPG produced within the country.


The decision comes amid growing concerns over the economic strain caused by rising LPG prices, which have recently surged to ₦1,500 per kilogram from an average of ₦1,100 – ₦1,250. Minister Ekpo expressed his deep concern, stating that the continuous increase in LPG prices is causing significant hardship for Nigerians.


"These measures are aimed at improving availability and ensuring affordability to protect Nigerians from the economic hardship caused by LPG price hikes," he explained.


To further stabilize the market, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will work with stakeholders to develop a domestic LPG pricing framework within 90 days.


This framework will index prices to the cost of local production rather than external markets, such as the Americas and Far East Asia. "Rather than the current practice of indexing against external markets, we will focus on the cost of in-country production," Ekpo emphasized.


Additionally, plans are underway to develop facilities for blending, storing, and distributing LPG domestically. These efforts aim to end exports until the market achieves sufficiency and price stability, reflecting a strategic approach to managing Nigeria's resources.


This initiative follows the establishment of a high-level committee in November 2023, led by NMDPRA's Authority Chief Executive, Farouk Ahmed, to tackle the soaring prices.


Despite these efforts, prices have continued to fluctuate, prompting the government to take more stringent measures.

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