The recent ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, by the Nigerian Federal Government has led to a significant reduction in the commodity’s cost, from approximately N1,500 per kilogram to around N900 per kilogram, according to LPG dealers on Wednesday.
During a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja, the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) praised the government’s decision to domesticate all LPG production. This policy, enacted on February 22, 2024, aimed to boost domestic LPG supply and reduce prices.
Oladapo Olatunbosun, the National President of NALPGAM, commended Minister Ekpo for his decisive action, which he said had stabilized and reduced LPG prices in the domestic market. He noted that, prior to the ban, international oil companies operating in Nigeria were exporting large volumes of LPG, contributing to high local prices and insufficient domestic supply.
Olatunbosun highlighted that the government’s intervention had brought down the cost of LPG from N20 million to N15 million per 20 metric tonnes. At the retail level, prices dropped from N1,400–N1,500 per kilogram to between N900–N1,000 per kilogram.
“We appreciate that at our meeting, you (Ekpo) promised to address the issue of LPG exportation amidst high prices and inadequate supply. Today, we say thank you because the ban on LPG export has significantly improved the market conditions, and consumers are witnessing the benefits,” Olatunbosun stated.
Minister Ekpo, in response, expressed concern over Nigeria’s low LPG consumption despite being a major gas producer. He reaffirmed President Bola Tinubu’s commitment to enhancing gas penetration across the country and thanked the marketers for their cooperation in reducing prices.
“We would not have achieved this progress without your support. We are working to ensure our abundant gas resources are available domestically at affordable prices, aligning with President Bola Tinubu’s vision for the sector and the economy,” Ekpo said.
The Minister had earlier announced the government’s directive for LPG producers to halt exports, aiming to increase domestic supply and lower prices. He emphasized ongoing discussions with major gas producers like Mobil, Chevron, and Shell to ensure compliance and address any arising issues.
The ban and subsequent measures, including the removal of taxes and levies on gas-related equipment imports, are expected to further stabilize the LPG market and benefit Nigerian consumers.
This strategic move by the government is anticipated to make cooking gas more affordable for Nigerians, encouraging more consumers to return to using LPG and enhancing energy accessibility across the nation.
