The ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by the Federal Government has resulted in a notable reduction in its cost, according to LPG dealers. The price of the commodity has plummeted from around N1,500 per kilogram to approximately N900/kg, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) revealed during a meeting with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
The ban, which was implemented on February 22, 2024, aimed to bolster domestic LPG volume and subsequently lower prices. Following the directive, LPG producers in Nigeria and industry stakeholders ceased exportation, responding to the surge in cooking gas prices.
During the meeting in Abuja, NALPGAM’s National President, Oladapo Olatunbosun, expressed gratitude to Minister Ekpo for spearheading the policy to domesticate all LPG produced within the country. Olatunbosun highlighted that this initiative had not only reduced the price of LPG but also stabilized it in the domestic market. He praised the government’s intervention, which resulted in a significant price drop, with LPG that previously sold for N20m per 20 metric tonnes now reduced to N15m. Similarly, retail prices witnessed a corresponding decrease from N1,400 – N1,500 per kilogram to between N900 – N1,000 per kilogram.
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Acknowledging the impact of the ban, Olatunbosun remarked, “We appreciate the fact that at the parley with us you (Ekpo) promised that the issue of exporting LPG in the face of inadequate supply and soar in prices will be addressed, and indeed you have taken steps to walk the talk.”
In response, Minister Ekpo emphasized the government’s commitment to expanding gas usage across Nigeria. He commended the cooperation of LPG marketers in aligning prices with current realities following the export ban. Ekpo reiterated President Bola Tinubu’s dedication to enhancing gas penetration nationwide, underscoring the importance of domestic availability at affordable prices.
The ban on LPG export aligns with the government’s broader efforts to stimulate domestic gas utilization and drive economic growth. Minister Ekpo’s engagement with industry stakeholders signals a proactive approach to addressing challenges and ensuring sustainable development in the gas sector.
As Nigeria strives to harness its abundant gas resources for national development, initiatives such as the ban on LPG export demonstrate strategic interventions aimed at fostering a conducive environment for growth and investment in the energy sector. With continued collaboration between government and industry stakeholders, the country is poised to achieve greater energy security, economic prosperity, and improved living standards for its citizens.
