Mr Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), has directed the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Liquefied Petroleum Gas (LPG) producers to halt the export of LPG produced in the country, effective from November 1, 2024.
This directive comes as part of measures to address the rising cost of LPG and the associated economic hardship on Nigerians.
During a meeting in Abuja with stakeholders, Ekpo expressed concern over the continuous surge in LPG prices.
The minister, in a statement issued by his spokesperson, Louis Ibah, stated, “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.”
Additionally, he noted that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) would collaborate with stakeholders to create a domestic LPG pricing framework within 90 days, linking the price to the cost of local production rather than international markets.
This new pricing structure aims to prevent Nigerians from paying inflated prices for a resource the country produces.
Ekpo further outlined that within the next 12 months, facilities would be developed to blend, store, and distribute LPG, pausing exports until the domestic market achieves stability and sufficiency.
These measures are part of ongoing efforts to ensure affordability and mitigate the economic strain caused by the LPG price hike.
Despite previous efforts, prices have remained unstable, with recent rates climbing to N1,500 per kilogramme, up from an average of N1,100 to N1,250.
The minister had earlier set up a high-level committee in November 2023, led by NMDPRA’s Chief Executive, Mr Farouk Ahmed, involving key players in the LPG value chain, but the price of the commodity has continued to fluctuate.
Tribune
