FG Finally Suspends Exportation of Cooking Gas as 1kg Sells for N1,500
- The federal government has stopped the exportation of liquefied petroleum gas or cooking gas out of the country
- It made the decision after suppliers lamented the high exchange rate challenges as the cost of cooking gas hit N1,500
- According to the state minister for petroleum resources, the action will enable govt to tame the spiraling price increase
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
In an effort to reduce scarcity and skyrocketing prices, the federal government declared on Thursday, February 23, that it has ceased exporting liquefied petroleum gas or cooking gas.
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Ekperikpe Ekpo, the state minister for petroleum resources, revealed the information to reporters during the "Internal Stakeholders' Workshop" in Abuja.
The Nation reported that the workshop theme is “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development.”
The development comes after cooking gas suppliers gave a condition for crashing price after the cost of 1kg of the product hit N1,500 as they called on the government to address the issue of the high exchange rate.
FG in discussion with stakeholders
Speaking on what the government has done to control the rising cost of domestic gas, Ekpo said that the ministry is constantly discussing with critical stakeholders like the Nigerian Midstream and Downstream Petroleum Regulatory Authority and operators such as Mobil, Chevron, and Shell to address the issue.
He explained that once there is a stoppage of the export of locally produced domestic gas, there will be more volume for the domestic market, which will automatically reduce the product's price.
He said:
“We are interacting with critical stakeholders to ensure that there is no exportation of LPG.
“All LPG produced within the country will have to be domesticated. And when this is done, the volume will increase, and the price will automatically crash.
“I am in contact with the regulation, NMDPRA; we hold meetings almost daily, and the producers such as Mobil, Chevron, and Shell. So there is that hope that things will turn around. We don’t need to make noise about it.”
Expert explains why cooking gas is expensive
Legit.ng reported that the cost of Liquified Petroleum Gas (LPG), also known as cooking gas, has increased nationwide, increasing pressure on Nigerian households.
The latest data from the National Bureau of Statistics showed that the average price of 5kg of cooking gas increased from N4,562.51 in October 2023 to N4,828.18 in November 2023.
Meanwhile, the average cost of refilling a 12.5kg cooking gas increased by 5.78% monthly, rising from N10,545.87 in October 2023 to N11,155.15 in November 2023.
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Source: Legit.ng
