FG bans export of cooking gas to crash prices

FG bans export of cooking gas to crash prices

The Federal Government has banned the exportation of Liquefied Petroleum Gas (LPG) also known as cooking gas in order to increase the volume of supply and crash the prices across the country.

This was made known to journalists by the Minister of Petroleum (Gas), Ekperikpe Ekpo, at the ‘Internal Stakeholders’ workshop on Thursday, February 22, 2024, in Abuja.

The minister who spoke at the sideline of the event stated that the LPG producers had been told to stop exporting the commodity out of Nigeria, following the recent jump in the cost of cooking gas.

The theme of the workshop is “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development.”

FG discussing with stakeholders

When asked what the government has done to control the rising cost of domestic gas, Ekpo said the ministry is discussing constantly with critical stakeholders like the Nigerian Midstream and Downstream Petroleum Regulatory Authority and operators such as Mobil, Chevron, and Shell to address the issue.

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He explained that once there is a stoppage of the export of locally produced domestic gas, there will be more volume for the domestic market which will automatically reduce the price of the product.

• He said, “We are interacting with critical stakeholders 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.
• “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.”

What you should know

• There have been reports of escalating prices of cooking gas in major cities across the country with the prices hovering between N17,000 and N18,000, as against the N9,000 the product was selling around November last year.
• Earlier in September 2023, gas retailers under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers warned that the price of a 12.5kg cooking gas cylinder could surge to N18,000 by December 2023 if the Federal Government does not intervene to regulate the actions of terminal owners.
• The president of the association, Olatunbosun Oladapo, attributed this unjustifiable price hike to terminal owners who, he alleged, are exploiting the excuse of a high foreign exchange rate to increase prices, causing significant hardship to the general population.

FG bans export of cooking gas to crash prices