What FG’s ban on cooking gas export will bring as soon as November 1

A federal government's three-pronged approach targets bringing down the cost of liquefied natural gas over 52 weeks.

Meiza Nigeria October 23, 2024

0 2 minutes read

Inflation at 32.70 percent has been the reason why so many Nigerians have found themselves struggling to afford almost anything including food and the cooking gas that prepares family meals.

It has been three years since Nigeria launched a decade of gas initiative but households are yet to start getting the benefits because of the soaring price, particularly for the liquefied natural gas (LPG) variant that helps prepare meals, and so there is a renewed federal government effort to control the situation starting from November 1, 2024.

In 2023, refilling a 12.5kg cylinder was predicted to reach up to ₦18000 by year-end but that didn't happen. A year later, that prediction is looking likely. [ — **In 2023, refilling a 12.5kg cylinder was predicted to reach up to ₦18000 by year-end but that didn’t happen. A year later, that prediction is looking likely.**

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo is the one leading this effort as should be expected. It hasn’t made much sense to the honourable minister and his team to be a country that produces cooking gas and yet the people suffer.

What seems to be the problem is the benchmarking of LPG against what goes on in the international market and Mr Ekpo is thinking that is not how it is meant to be. To prevent further hardship, there have been consultations with major stakeholders, including the Nigerian National Petroleum Company (NNPC) Limited and a regulator.

Speaking about the problems being addressed via his X handle yesterday, the minister said that despite previous efforts, including the establishment of a high-level committee led by Mr. Farouk Ahmed, the Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), to address the issues, prices have continued to fluctuate, recently reaching N1,500 per kg from an average of N1,100–N1,250.

Convening a meeting with key stakeholders in Abuja to address these price increases yesterday has led to three action plans. The first initiative is in the short-term and would involve NNPCL and LPG producers halting exports of LPG produced in-country or [importing] equivalent volumes at cost-reflective prices beginning November 1.

After this will be developing an LPG pricing framework, which the petroleum industry regulator NMDPRA will help lead within 90 days. The pricing measures will focus on the cost of local production rather than external market indices like those from prices in the Americas or Asia, says the minister who thinks Nigerians paying a premium for a locally-produced commodity is what that ought not to be.

The anticipation by President Bola Tinubu’s cabinet pictures a positive change happening over 52 weeks would see the location of blending and storage facilities that will aid free-flowing distribution to the consumers.

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo on Tuesday 22 October, 2024 convened a meeting with key stakeholders in Abuja to address the price of liquefied natural gas rising uncontrollably. [X - Ekperikpe001] — The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo on Tuesday 22 October, 2024 convened a meeting with key stakeholders in Abuja to address the price of liquefied natural gas rising uncontrollably. [X – Ekperikpe001]

Inflation at 32.70 percent in September has been the reason why so many Nigerians have found themselves struggling to afford almost anything. Before they can even get to the point of thinking to outmanoeuvre soaring cooking gas prices, they need to first afford the food they would eat and that has presented a different level of difficulty.

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November holds a lot of promises for Nigeria based on the previous messaging from other cabinet members like the Minister of Agriculture and Food Security Mr Abubakar Kyari. Nearing what was going to be a 10-day hunger protest in August, he told a live television broadcast that food shortages would end because of the move to take advantage of the dry season planting.

About October-November this year; that is when we are going to have the harvest. We are expecting a bumper harvest hopefully, barring any other natural issues. God forbid!

Meiza Nigeria