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Federal Government Bans Cooking Gas Export to Combat Price Surge

Federal Government Bans Cooking Gas Export to Combat Price Surge

In a bid to alleviate the soaring prices of cooking gas and stabilize the domestic market, the Federal Government of Nigeria has implemented a ban on the exportation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.

The decision was announced by the Minister of Petroleum (Gas), Ekperikpe Ekpo, during the ‘Internal Stakeholders’ workshop held in Abuja on Thursday, February 22, 2024.

Ekpo emphasized the necessity of increasing the volume of supply within the country to address the recent spike in cooking gas prices.

At the workshop themed “Harnessing Nigeria’s Proven Gas Reserves for Economic Growth and Development,” Ekpo disclosed that LPG producers have been instructed to cease all export activities. This directive aims to redirect locally produced cooking gas to the domestic market, thereby curbing price escalation.

Addressing concerns about rising gas costs, Ekpo highlighted ongoing dialogues with key stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as well as major operators such as Mobil, Chevron, and Shell. He underscored the collaborative efforts to tackle the issue and ensure a sustainable solution.

Ekpo reiterated the government’s commitment to facilitating a conducive environment for the gas sector, mentioning the withdrawal of taxes and levies on gas-related equipment importation as a significant incentive.

The move comes in response to reports of escalating cooking gas prices across major cities in Nigeria. Prices have surged from around N9,000 in November last year to between N17,000 and N18,000 presently. Earlier warnings from gas retailers in September 2023 highlighted the potential for prices to reach N18,000 by December 2023 if regulatory intervention was not implemented.

The president of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, attributed the price hikes to terminal owners exploiting high foreign exchange rates, leading to hardships for consumers.

The Federal Government’s ban on cooking gas exportation underscores its proactive measures to address economic challenges and ensure accessibility to essential commodities for the Nigerian populace.

This Article is Fact-Checked. See Policy.
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