FG Bans Cooking Gas Exports as Domestic Prices Soar

The Federal Government of Nigeria has announced a ban on the export of Liquefied Petroleum Gas (LPG) produced within the country in response to the surging price of the commodity. The decision comes as the price of cooking gas continues to rise, adding to the economic burden on Nigerian households.

In a statement released by his media team, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, expressed concern over the sharp increase in LPG prices, which have jumped from an average of N1,100 – N1,250 per kilogram to N1,525 in recent weeks. The escalating costs have prompted the government to take immediate action.

The Minister had previously established a high-level committee in November 2023 to tackle the issue, led by Mr. Farouk Ahmed, the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA). Despite these efforts, prices have remained volatile.

In an emergency meeting with stakeholders in the LPG value chain, Ekpo outlined several directives aimed at stabilizing the market. Effective from November 1, 2024, all LPG producers, including the Nigerian National Petroleum Company Limited (NNPCL), are required to halt the export of LPG produced domestically. Additionally, if LPG is exported, equivalent volumes must be imported at cost-reflective prices.

To address long-term challenges, the government is working on establishing a domestic pricing framework within 90 days. This framework will base LPG prices on local production costs rather than indexing them to global markets, which has been one of the factors driving up prices for Nigerians. Over the next 12 months, new facilities for blending, storage, and distribution of LPG will also be developed to ensure domestic market stability.

“The new measures are designed to improve the availability of LPG and make it more affordable for Nigerians,” Ekpo stated, stressing the government’s commitment to alleviating the financial strain caused by the continuous price hike.