The Federal Government has taken a bold step to address the rising cost of cooking gas in Nigeria by halting the export of Liquefied Petroleum Gas (LPG) produced locally.
This decision, which takes effect from November 1, 2024, is aimed at reducing the burden on Nigerians who have faced skyrocketing prices in recent months.
Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), made this announcement during a meeting with stakeholders in Abuja.
He explained that the export suspension would help stabilize the price of LPG, which has become increasingly unaffordable for many households.
“The short-term solution is to stop exporting LPG produced in the country,” said Ekpo. “We want to ensure that the gas produced here stays here and is sold at reasonable prices.”
The minister’s comments were part of a statement released by his spokesman, Louis Iba, outlining the government’s immediate and long-term strategies to tackle the gas price crisis.
For months, Nigerians have felt the pinch as cooking gas prices soared from an average of N1,100 to N1,500 per kilogram. This price hike has led to widespread complaints, as cooking gas is an essential household commodity.
Ekpo acknowledged the hardship this has caused, saying the government is aware of the difficulties Nigerians are facing.
“We are working to reduce the burden on families who are already struggling with high costs,” he said.
The move to halt LPG exports is part of a broader strategy to ensure that domestic consumers benefit from Nigeria’s natural resources.
As part of the government’s efforts to stabilize the market, Ekpo has directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to work with stakeholders to develop a new pricing framework for LPG within the next 90 days.
This framework will ensure that the price of LPG is linked to the cost of producing it within the country, rather than being tied to international markets.
Currently, LPG prices in Nigeria are often indexed against the cost of gas in foreign markets, such as the Americas and Far East Asia, even though the commodity is produced locally.
This has caused Nigerians to pay inflated prices, which the government now aims to change.
Ekpo did not mince words when he expressed his concern about the ongoing rise in cooking gas prices, despite the government’s previous efforts to address the issue.
A high-level committee was established in November 2023 to tackle the problem, but prices have continued to fluctuate.
“Despite the committee’s work, we are still seeing significant price increases,” said Ekpo. “It is clear that more needs to be done, and we are taking stronger action.”
The committee, led by NMDPRA Chief Executive Farouk Ahmed, included key players from the LPG industry, but their efforts have not yet brought the desired relief to Nigerians.
In addition to the short-term suspension of LPG exports, the government is also focusing on long-term solutions to stabilize the market.
Within the next 12 months, the government plans to develop facilities that will enable the blending, storage, and distribution of LPG domestically.
The rising cost of cooking gas has become a national issue, with many households switching back to less efficient and more harmful fuel sources, such as firewood, due to the high prices.
This trend has raised concerns about the environmental impact and the health risks associated with indoor pollution from burning solid fuels.
Ekpo’s announcement, therefore, comes at a crucial time, as the government seeks to prevent further hardship and protect both the economy and the environment.
