The measure is to mitigate the price of the gas that has been soaring steadily.
Minister of State Petroleum Resources (Gas) Ekperikpe Ekpo, said “Short Term Solution: 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.”
Ekpo convened a meeting in Abuja with stakeholders to address the skyrocketing price and its attendant hardship on Nigerians.
This was contained in a statement by spokesman of the Minister Louis Iba.
In terms of the pricing framework, he directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to meet with stakeholders to derive the pricing framework within 90 days.
The statement reads: “Pricing Framework: NMDPRA will engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing 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.”
Proffering a long term solution, the statement added that within 12 months, facilities will be developed to blend, store and deliver LPG, ending exports until the market achieves sufficiency and price stability.
The statement noted that the Minister expressed deep concern over the continuous increase in the price of Liquefied Petroleum Gas (LPG), popularly known as cooking gas in the country.
In a bold move to tackle the soaring price of cooking gas, the Minister established a high-level committee in November 2023 led by the Authority Chief Executive of the NMDPRA, Mr. Farouk Ahmed with key stakeholders in the LPG value chain.
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.
Ekpo’s directives are a step towards addressing the inherent challenges and ensuring Nigerians have access to affordable cooking gas.