…Directs NMDPRA to develop domestic pricing framework
Following the incessant price in the cost of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in the country, the Minister of State Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, has ordered the Nigerian National Petroleum Company (NNPC) Ltd and gas marketers to halt the export of LPG produced in the country.
Recall that in a bold move to tackle the soaring price of cooking gas, the Gas Minister had established a high-level committee in November 2023, led by the Authority Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, and comprising key stakeholders in the LPG value chain.
In the latest LPG (cooking gas) price watch report for August 2024 by the National Bureau of Statistics (NBS), the NBS said Nigerians paid an average price of N15,552.56 for a 12.5kg cylinder of cooking gas in the month under review — compared to the N9,194.41 in August 2023.
However, despite this effort to address the issue, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100 – N1,250 per kg.
The Minister yesterday in Abuja convened a meeting with stakeholders to address the skyrocketing price and its attendant hardship on Nigerians.
The Minister directed that, “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.”
He also instructed the NMDPRA to engage stakeholders to create a domestic LPG pricing framework within 90 days.
He urged the regulator to index price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and the Nigerian people are required to pay much higher price for an essential commodity the country is naturally endowed with.
The Minister further directed that within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.
Ekpo’s directives are a step towards addressing the inherent challenges and ensuring Nigerians have access to affordable cooking gas.
“The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike,” the Minister said.