The Federal Government has directed the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Liquefied Petroleum Gas (LPG) producers to stop exporting cooking gas (LPG) starting from November 1, 2024, in a bid to lower prices across the country.
This directive was issued by the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, during a meeting with industry stakeholders in Abuja. The minister’s spokesperson, Louis Ibah, explained that the meeting was convened to address the rising cost of cooking gas in Nigeria.
“From November 1, 2024, NNPC Ltd. and LPG producers are to halt the export of domestically produced LPG or import an equivalent volume at cost-reflective prices,” said Ibah.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will also work with stakeholders to develop a domestic pricing framework within 90 days. This new framework will tie LPG prices to the cost of local production, as opposed to the current practice of linking prices to international markets such as the Americas and Far East Asia, despite Nigeria producing the commodity locally.
As a long-term solution, the government plans to establish facilities for blending, storing, and distributing LPG within the next 12 months. This move is expected to halt exports until there is enough supply to meet domestic demand and stabilize prices.
