FG Bans Cooking Gas Exports To Lower Local Prices

The Federal Government has announced that, starting November 1, 2024, the export of locally produced Liquefied Petroleum Gas (LPG), also known as cooking gas, will be stopped to focus on supplying the domestic market. This move aims to address the rising cost of cooking gas in Nigeria.

The decision was revealed by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in a statement issued by his spokesperson, Louis Ibah, in Abuja. The minister reached this conclusion after holding a high-level meeting with key stakeholders to find solutions to the skyrocketing gas prices, which have caused significant hardship for many Nigerians.

In Nigeria, the price of cooking gas has surged from ₦700 per kilogram in June 2023, when President Bola Tinubu took office, to ₦1,500 per kilogram in October 2024—a 114% increase in just 16 months.

To combat these rising prices, the minister had earlier formed a high-level committee in November 2023, led by Farouk Ahmed, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This committee included important figures in the LPG value chain. However, despite their efforts, the price of cooking gas has continued to fluctuate, recently reaching ₦1,500 per kilogram from a previous range of ₦1,100 to ₦1,250 per kilogram.

In a new directive aimed at reducing gas prices, Ekpo introduced short-term and long-term strategies. He stated, “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.”

Additionally, Ekpo instructed NMDPRA to collaborate with stakeholders to create a new pricing framework within 90 days. The goal is to base the price on local production costs instead of indexing it to external markets like the Americas and Far East Asia. He emphasized that this change is necessary because Nigeria produces LPG domestically, yet Nigerians pay much higher prices compared to other regions.

For a long-term solution, the minister’s statement highlighted that within 12 months, facilities will be developed to blend, store, and distribute LPG locally. Exports will remain suspended until the Nigerian market achieves stability in both supply and pricing.

Ekpo expressed serious concern over the continuous rise in LPG prices and stated that these new directives are part of the government’s efforts to ensure that Nigerians have access to affordable cooking gas.

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