The Federal Government has announced a ban on the export of domestically produced cooking gas, effective November 1, 2024.
This decision, aimed at prioritising local consumption, comes in response to the rising costs of gas that have been impacting Nigerian households.
The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, made the announcement on Tuesday,October 22, emphasising that the move is intended to ease the financial burden on citizens.
The information was conveyed in a statement by the Minister’s spokesperson, Louis Ibah, during a press briefing in Abuja.
Ibah noted that the decision followed a high-level meeting where key stakeholders convened to discuss the challenges posed by soaring gas prices.
He stated, “With effect from November 1, 2024, the Nigerian National Petroleum Company Limited (NNPCL) and Liquefied Petroleum Gas (LPG) producers are required to stop exporting LPG produced in the country or to import equivalent volumes of LPG exported at cost-reflective prices.”
In addition to the export ban, the Minister directed the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to engage with stakeholders to develop a new pricing framework for LPG within the next 90 days.
This framework is intended to align domestic prices with the cost of in-country production, rather than relying on international market rates from regions such as the Americas and Far East Asia.
“This new pricing framework will ensure that the Nigerian people pay a fair price for an essential commodity that our country naturally produces,” Ibah explained.
He highlighted the government’s commitment to protecting consumers from the volatility of global gas prices, which has led to higher costs for locally produced gas.
As the country prepares for the implementation of this ban, stakeholders in the gas sector will need to adjust to the new regulations and pricing structures aimed at stabilising the domestic market and ensuring adequate supply for all Nigerians.
