FG Takes Serious Action to Crash Cooking Gas Prices, Gives Orders to Exporters
- The Nigerian government has halted exporting cooking gas to prioritise local supplies
- The minister of State for Petroleum Resources (Gas), Ekperikpo Ekpo, disclosed that the decision was made to stabilise the product’s prices
- He said that from November 1, 2024, the NNPC and other stakeholders would cease to export the product and focus on local supplies
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government has halted the export of locally produced Liquified Petroleum Gas (LPG), also known as cooking gas, effective November 1, 2024.
Ekperikpo Ekpo, the minister of State for Petroleum Resources (Gas), disclosed the directive. The order seeks to prioritise domestic supply over exports to alleviate the burden of rising costs on Nigerian consumers.
Source: Getty Images
FG’s move will crash cooking gas prices
His spokesman, Louis Ibah, shared the minister's statement after a high-level meeting in Abuja between the government and stakeholders in the cooking gas value chain.
The discussion focused on the continued rise in gas prices and several impacts on households nationwide.
Responding to the commodity's rising price, the minister convened a high-level committee in November last year, chaired by Farouk Ahmed, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) chief executive, to find sustainable solutions.
However, with prices still rising, the government took a more drastic action by stopping LPG exports.
The minister’s latest directive mandates that gas producers, including the Nigerian National Petroleum Company Limited (NNPC), must halt exporting LPG or import an equivalent amount at cost-reflective prices if exports occur.
Producers to stop exporting cooking gas
According to a BusinessDay report, producers will stop exporting cooking gas on November 1, 2024, and import equivalent at prices reflecting market realities.
Ekpo ordered NMDPRA to partner with stakeholders within 90 days to develop a domestic pricing framework based on local costs. This contrasts the current model, which calculates prices against external markets such as those in the Americas and Asia.
The minister’s statement disclosed that international market prices have forced Nigerians to pay high rates for the product despite being locally produced.
Reports say the Nigerian government plans to develop storage, blending, and distribution facilities in the next 12 months. The ban will remain in place until the country achieves market sufficiency.
Cooking gas prices hits highest under Tinubu
A previous report by Legit.ng revealed that cooking gas prices have risen 114% since President Bola Tinubu assumed office.
Experts have disclosed that the volatility of the exchange rate caused the rise in LPG prices as the Nigerian government devalued the naira.
The National Bureau of Statistics (NBS) disclosed that the average retail price for refiling a 5kg cylinder of LPG rose by 4.19% monthly from N6.430.02 in August 2024 to N6,699.63 in September 2024.
NBS disclosed that the cooking gas price increased yearly by 59.90% from N4,189.96 in September 2023.
Nigerian states with the highest cooking gas prices
On the state level, Rivers recorded the highest average price for refilling a 5kg cylinder of cooking gas with N7,285.71, followed by Gombe with N7,271.88, and Borno with N7,089.72.
Companies announce free 3kg and 6kg cooking gas cylinders
Legit.ng earlier reported that Women in Energy Network (WIEN), in collaboration with Smart Gas Limited, wants to distribute 100,000 units of 3kg and 6kg gas cylinders to households across the 774 LGAs.
According to WEIN President Eyono Fatai-Williams, the recent LPG distribution initiative is critical to the nation's fuel diversification and economic sustainability goals.
She mentioned the advantages of switching to LPG and emphasised how lowering household air pollution improves public health.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
