Nigeria’s FG Bans Exports of Cooking Gas Amid Rising Prices

Confidence UbaniOctober 23, 20241 Mins read430

Nigeria’s Federal Government has ordered the Nigerian National Petroleum Company (NNPC) and Liquefied Petroleum Gas (LPG) producers to stop exporting cooking gas starting November 1, 2024. This decision aims to bring down the rising cost of gas across the country.

Ekperikpe Ekpo, the Minister of State for Petroleum Resources (Gas), announced the move after a Tuesday meeting with stakeholders in Abuja.

On the short-term solution, with effect from Nov. 1, 2024, NNPC Ltd. And LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost-reflective prices.

On pricing framework, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will engage stakeholders to create a domestic LPG pricing framework within 90 days indexing price to the cost of in-country production, he said.

Nigerians have been facing a sharp increase in cooking gas prices, which recently jumped to N1,500 per kilogram from an earlier average of N1,100–N1,250. Despite previous efforts to stabilise the market, the rising cost of cooking gas has continued to put pressure on households and businesses. While the recent ban will improve local supply, it is barely enough to reverse Nigerians’ economic strain. Notably, this suspension is not part of Nigeria’s Export Prohibition Act of 1989, which restricts exporting specific agricultural products like maize and beans.

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