Nigeria Halts LPG Exports to Address Soaring Domestic Gas Prices
In a decisive move to combat Nigeria’s surging cooking gas prices, the Federal Government has announced a halt to the export of locally produced Liquefied Petroleum Gas (LPG) from November 1, 2024. This decision, announced by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, is intended to prioritise domestic supply amid escalating costs that have strained households across the country.
The measure follows a high-level meeting held in Abuja with key stakeholders from the LPG value chain, convened to tackle the skyrocketing prices. Ekpo’s spokesman, Louis Ibah, confirmed the development, which is seen as a direct response to a 114% price hike in cooking gas over the last 16 months—from N700 per kilogram in June 2023, to N1,500 per kilogram in October 2024.
Speaking on the new directive, Ekpo emphasised the urgency of the situation, stating, “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.”
The government’s intervention comes amid widespread public outcry over the affordability of essential commodities. Despite previous efforts, including the formation of a high-level committee in 2023 to address the volatility in gas prices, costs have continued to rise, forcing many Nigerians to bear the brunt of the fluctuations.
The Minister’s statement outlined both short- and long-term strategies to stabilise the domestic market. Among the immediate steps, Ekpo directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to collaborate with stakeholders to develop a new pricing framework within 90 days. This framework would base prices on the cost of domestic production rather than international markets, such as those in the Americas and Far East Asia.
“The current practice of indexing prices against external markets is unsustainable for a commodity produced locally,” Ekpo said, expressing concern that Nigerians are forced to pay excessively for a resource that the country is naturally endowed with.
Looking ahead, the government aims to establish LPG storage, blending, and distribution facilities within the next 12 months, ensuring a steady local supply and long-term price stability. Until these facilities are operational and the market achieves sufficiency, exports will remain suspended.
The decision marks a significant shift in policy as the government seeks to ease the financial burden on Nigerians, ensuring affordable access to cooking gas—an essential commodity for millions of households across the nation.
