The Nigerian government has announced a suspension of the export of Liquefied Petroleum Gas (LPG) to prioritize domestic supply and curb skyrocketing prices. The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made this known during a meeting with key stakeholders, highlighting the growing burden on Nigerians due to the rising cost of cooking gas. The new policy will take effect on November 1, 2024, as the government aims to stabilize the domestic LPG market, which has seen prices soar by over 114% in the past year.
Despite efforts to address the issue, including the formation of a high-level committee in 2023, the price of LPG continues to fluctuate. As of October 2024, the price surged to N1,500 per kilogram, up from N700 per kilogram in mid-2023. The government’s new directive includes measures for both short-term and long-term price stabilization, requiring local LPG producers to stop exports or import equivalent volumes at cost-reflective prices. The directive also tasks the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) with establishing a new domestic pricing framework within 90 days.
To ensure long-term stability, the government plans to develop facilities for blending, storing, and distributing LPG domestically within the next 12 months. These measures are intended to ensure that Nigerians have access to affordable cooking gas, with prices indexed to local production costs rather than international markets. The minister expressed optimism that these steps will address the country’s LPG price challenges and ease the financial burden on households.
