BREAKING: FG Crash Cooking Gas Price
The Federal Government has directed the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Liquefied Petroleum Gas (LPG) producers to stop the export of cooking gas, effective November 1, 2024, in a bid to reduce prices and improve domestic supply.
Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, issued the directive during a stakeholders’ meeting in Abuja on Tuesday. The meeting, which addressed the rising cost of cooking gas across the country, aimed to find short- and long-term solutions to stabilize the market.
Speaking through his spokesperson, Louis Ibah, Ekpo announced immediate steps to curb exports and bring relief to consumers.
“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,” Ekpo stated.
He further outlined plans for a new pricing framework:
“On 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 price 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.
“On long-term solution, within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability,” he added.
Ekpo emphasized that the measures are part of broader efforts to address structural challenges in the sector and ensure Nigerians have access to affordable cooking gas. He stressed that stabilizing prices would not only protect consumers but also mitigate the economic hardship caused by rising LPG costs.
