October 22, 2024
As a measure to mitigate the price of locally produced Liquefied Petroleum Gas (LPG) “cooking gas” that has been soaring steadily, the Federal Government plan to stopped it exportation
Minister of State Petroleum Resources (Gas) Ekperikpe Ekpo, said , as short term solution to escalating price, “With effect from November 1, 2024, NNPCL and LPG producers are to stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost reflective prices.”
This was contained in a statement by spokesman of the Minister Louis Iba.
He also directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to meet with stakeholders to derive the pricing framework within 90 days.
The statement reads: “Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, 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 the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.”
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He added that, to attain long term measure, within 12 months, facilities will be developed to blend, store and deliver LPG, ending exports until the market achieves sufficiency and price stability.
The Minister, in the statement, expressed deep concern over the continuous increase in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in the country.
The prices of cooking gas have continued to fluctuate, recently soaring from an average of between N1,100 – N1,250 to N1,500 per kg
