The federal government has ordered the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Liquefied Petroleum Gas (LPG) producers to halt the export of LPG or cooking gas from November 1 to reduce prices across the country.
The Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo, gave this directive on Tuesday at a meeting with stakeholders in Abuja.
According to the Minister’s spokesperson, Louis Ibah, the meeting was focused on the skyrocketing price of cooking gas in the country.
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.
“This is 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 Nigerians are required to pay a higher price for an essential commodity the country is naturally endowed with.
ALSO READ
- Chevron wins bid in Nigeria’s 2025 licensing round
- NUPRC Announces Winners of 2025 Licensing Round
- ECOWAS Advances $25bn African Atlantic Gas Pipeline with IGA Signing
- 143 Firms Jostle for 50 Oil Blocks
- Ten Firms Secure Petroleum Prospecting Licences as NUPRC Urges Swift Investment, Host Community Compliance
“On long-term solution, within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability,” he said.
Furthermore, Ekpo explained that the directives were a step towards addressing the underlying challenges and ensuring that Nigerians
