The federal government of Nigeria has announced the immediate suspension of Liquefied Petroleum Gas (LPG) exports.
This is in the bid to curb the rising cost of cooking gas in the country.
Minister of state for petroleum resources (gas) Ekperikpe Ekpo, announced the suspension of LPG exportation during an “Internal Stakeholders’ Workshop” held in Abuja.
LEADERSHIP checks reveal that the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, escalated to N1,400 per kilogramme, this week amidst rising demand. This translates to about N17,500 for the 12.5kg cylinder,
This sharp increase, up from less than N500 in 2018, sent shockwaves through households nationwide, adding another layer of burden to an already strained population.
Recall that last year the Nigerian Association of Liquefied Petroleum Gas Marketers (NALGAM) had predicted that a 12.5kg cylinder would cost N18, 000 going by the frequent increases.
Ekpo said the move is part of a strategic effort to boost the availability of LPG within the domestic market, to alleviate the financial burden on consumers due to surging prices.
Ekpo revealed there are ongoing discussions with critical stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as well as major operators like Mobil, Chevron, and Shell.
Last November, following a rise in the price of cooking gas per kg from about N700 to above N1,100, Ekpo had constituted a committee headed by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, to come up with recommendations on how to boost supplies and crash the price within a week.
Speaking yesterday, the minister said the discussions are aimed at collaboratively addressing challenges faced by consumers and ensuring a more stable and affordable cooking gas market.
The minister emphasised the importance of halting the exportation of locally produced LPG, intending to keep the entire production within the country.
He added that by doing so, the government anticipates an increase in the volume available for the domestic market, potentially leading to a reduction in prices and providing relief to consumers grappling with the high cost of cooking gas.
“There is that hope that things will turn around. We don’t need to make noise about it,” he said.
The ‘Internal Stakeholders’ Workshop’ at the instance of the gas minister had in attendance top officials from the Ministry of Petroleum Resources, NNPCL, NUPRC, NMDPRA, PTI, NCDMB, NNRA and PTDF.
Ekpo tasked the MDAs on the mandate of President Bola Tinubu, to unlock the full potential of the country’s vast gas resource for the benefit of Nigerians.
The minister also disclosed his intervention (with critical stakeholders) in ensuring that all LPG (cooking gas) produced within the country is domesticated. This is aimed at stabilising and crashing the price of LPG in the domestic market for consumers.
His words: “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 of course, the price will automatically crash.”
