Nigeria Plans Cooking Gas Price Reduction by Banning Export, Reveals Minister

In a bid to tackle the escalating cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, the Federal Government of Nigeria is set to halt its exportation. The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, made this announcement during the Internal Stakeholders’ Workshop held in Abuja.

The workshop, themed “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development,” focused on repositioning the nation’s gas sector. Ekpo stated that all LPG produced within the country would be domesticated to increase volume and consequently lower prices.

“I am in contact with the regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the producers of LPG such as Chevron, Mobile, and Shell. We have meetings on a daily basis,” Ekpo revealed.

He expressed optimism that addressing the issue through these engagements would bring about positive changes without the need for extensive public announcements. The minister emphasized the importance of identifying problems and resolving them collectively.

On the matter of converting vehicles to Compressed Natural Gas (CNG) to mitigate the impact of fuel subsidy removal, Ekpo mentioned ongoing discussions with the Presidential Initiative on CNG. However, he deferred detailed information until a clearer picture emerged.

Regarding the withdrawal of taxes and levies from gas-related equipment importation, Ekpo acknowledged the incentive provided by the federal government. He noted that while investors seek profit maximization, regulators must step in to ensure price reduction.

The workshop also featured a presentation by Mrs Oluremi Komolafe, Director Gas of the ministry. She highlighted recommendations from the operators in the gas sector, emphasizing the need for balanced gas pricing to support sustainable sectoral growth.

Komolafe relayed concerns from LPG retailers about the surging price of cooking gas, which has become unaffordable for the common man. Retailers stressed the potential threat to the clean cooking initiative, making charcoal an attractive and cheaper alternative. Additionally, they raised concerns about substandard gas cylinders and urged the Ministry to enact a national cylinder and accessories policy.

As of January 2024, cooking gas prices had surged to N1,400 per kg, up from N950, according to checks by the News Agency of Nigeria (NAN). The government’s initiatives aim to address these challenges and create a more affordable and sustainable cooking gas market in Nigeria.