FG Bans Cooking Gas Exports to Combat Soaring Prices

The Federal Government has announced a halt to the export of locally produced Liquefied Petroleum Gas (LPG), commonly known as cooking gas, in a bid to enhance domestic availability. This decision, announced by Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, will take effect on November 1, 2024, as part of efforts to combat soaring gas prices in Nigeria.

In a statement from ministerial spokesman Louis Ibah, it was revealed that the decision came after a high-level meeting with stakeholders aimed at addressing the escalating cost of gas, which has seen a dramatic rise from N700 per kilogram in June 2023 to N1,500 per kilogram in October 2024—an increase of approximately 114% over 16 months.

In response to the price surge, Ekpo had previously established a committee led by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, to work with stakeholders in the LPG value chain. Despite these efforts, prices have continued to fluctuate, recently reaching N1,500 from an average of N1,100 to N1,250 per kilogram.

To further address the issue, Ekpo outlined both short-term and long-term strategies. Effective November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and LPG producers will cease exporting locally produced gas or must import an equivalent volume at cost-reflective prices.

Additionally, the NMDPRA is tasked with creating a domestic LPG pricing framework within 90 days, shifting the pricing model to reflect in-country production costs instead of international market rates. Over the next 12 months, facilities will be developed to blend, store, and distribute LPG, with exports suspended until local supply meets demand and price stability is achieved.

Ekpo emphasized the government’s commitment to ensuring affordable access to cooking gas for Nigerians amid rising prices.