Price surge: Nigerian Govt places fresh ban on cooking gas

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The Federal Government of Nigeria has prohibited the export of cooking gas, popularly known as liquefied petroleum gas, or LPG, due to the recent increase in its price.

This was said in a statement by Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), who expressed concern over the commodity’s growing price.

The typical price of the commodities was between N1,100 and N1,250 per kilogramme, but now it is N1,525 per kilogramme.

The statement claims that in order to address the rising costs and the suffering they cause Nigerians, Ekpo called a meeting with important players in the LPG value chain.

The following directives were announced by the minister:

Short-Term Solution: The Nigerian National Petroleum Company Limited (NNPCL) and LPG producers are required to stop exporting LPG made in the nation as of November 1, 2024. They will have to import a comparable volume at cost-reflective pricing if they keep exporting.

Pricing Framework: In order to develop a domestic LPG pricing framework, the NMDPRA will consult with stakeholders within ninety days. The existing system, which uses external market prices from places like the Americas and Far East Asia, will be replaced by a new framework that is geared to the cost of domestic production.

Long-Term Solution: In order to stop exports until domestic supply is enough and prices stabilise, the government intends to build infrastructure for blending, storing, and distributing LPG over the course of the next 12 months.

The minister emphasised that the actions were intended to increase supply, guarantee affordability, and shield Nigerians from the financial burden brought on by rising commodities prices.

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