In a move aimed at curbing soaring prices, the Nigerian Federal Government has imposed a ban on the exportation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
The decision comes in response to recent cost increases in the domestic market.
Key findings revealed that the refill cost for a 12.5kg cylinder of cooking gas has surged to approximately N18,000 in cities like Abuja, Lagos, and Kano. Just last November, the same product was available for less than N9,000.
To address the issue, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, established a committee in November 2023.
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Led by Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the committee aimed to stabilize prices.
Regardless, the cost of cooking gas continues to rise, prompting some users to switch to charcoal.
Ekpo explained that the government is actively engaging with international oil companies such as Mobil, Shell, and Chevron to halt LPG exports and mitigate price fluctuations.
In November 2023, a kilogram of cooking gas cost around N700, but it now stands at approximately N1,400/kg. Operators warn that without government intervention, prices may escalate further.
Ekpo said:
“With the issue of gas, you have seen the demonstration of the Federal Government by withdrawing all taxes and levies from the importation of gas-related equipment. It is a big incentive.
“On the issue of LPG (cooking gas), we are interacting with the critical sectors to ensure that there is no exportation of LPG. All LPG produced within the country will have to be domesticated. And when this is done, the volume will increase and, of course, the price will automatically crash.
“I’m in contact with the regulator, NMDPRA, we have meetings almost daily with the producers of the gas like Mobil, Chevron and Shell. So there is that hope that things will turn around.
“And that is also why we are having this engagement to know exactly what the problems are so that we can address them once and for all.”
