FG To Ban Exportation Of Cooking Gas

In its bid to reduce prices, the Federal Government (FG) has directed 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.

This directive was issued by the Minister of State Petroleum Resources (Gas), Mr Ekperikpe Ekpo on Tuesday at a meeting with stakeholders in Abuja.

He said, “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.

“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.”