The Federal Government of Nigeria has ordered a ban on the exportation of Liquefied Petroleum Gas (LPG), popularly known as cooking gas, to curb inflation and the rising price of the product.
The ban will take effect on November 1, 2024. Mr. Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), announced It.
Part of the statement given by his aide, Mr. Louis Ibah, reads: “On the short-term solution, with effect from Nov. 1, 2024, NNPC Ltd. and LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost-reflective prices. Regarding the pricing framework, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing prices to the cost of in-country production. This is rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and Nigerians are required to pay a higher price for an essential commodity the country is naturally endowed with.“
Mr. Ekpo also mentioned long-term solutions, “Within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.“
The government’s decision to ban LPG exports is intended to address domestic inflationary challenges. By halting exports, Nigeria aims to ensure that locally produced LPG is affordable for its citizens. This move could stabilize Nigeria’s LPG market and make cooking gas more accessible to the average household.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is mandated to create a domestic pricing framework within 90 days. This shift from indexing prices against external markets is expected to reduce Nigerians’ financial burden.
Developing facilities for blending, storing, and delivering LPG within 12 months is a long-term strategy that should lead to market sufficiency and price stability.
Comment, Like 👍, share this article, and Follow us on our social media handles.
WhatsApp Channel
Telegram Channel
 effective November 1, 2024, to address inflation and stabilize local prices, ensuring affordability for citizens.){kind=link}