The Federal Government’s recent ban on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has led to a substantial decrease in the commodity’s price, from approximately N1,500 per kilogram to around N900/kg, LPG dealers reported on Wednesday.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) highlighted this development during a courtesy visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja.
The export ban, implemented on February 22, 2024, was aimed at increasing the domestic availability of LPG to drive down prices. The government mandated that LPG producers and key industry stakeholders stop exporting the commodity to ensure a sufficient domestic supply, which had seen a significant price increase.
During the meeting, NALPGAM President Oladapo Olatunbosun praised Minister Ekpo for his decisive action in mandating the domestication of all LPG produced in Nigeria. He noted that this policy had successfully reduced and stabilized the price of LPG in the domestic market.
Olatunbosun recalled a stakeholders’ consultative forum held in Abuja in February, where the association alerted the minister to the practice of international oil companies exporting large volumes of gas. He argued that retaining these volumes for domestic use would eliminate the need to import LPG at high costs, thereby stabilizing local prices.
“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 soaring prices would be addressed, and indeed you have taken steps to walk the talk,” Olatunbosun said. “Today we say thank you because the ban on LPG export has made a lot of changes in the market, and consumers can testify to this. People who abandoned their gas cylinders due to the price hike are coming back, and we are confident that by the time the naira gains more strength, consumers will enjoy even better prices for LPG.”
The intervention by the Federal Government has resulted in a notable price reduction. The price for 20 metric tonnes of LPG dropped from N20 million to N15 million. At the retail level, prices have decreased from N1,400 – N1,500 per kilogram to between N900 – N1,000 per kilogram.
Minister Ekpo expressed concern over the paradox of Nigeria being a major gas producer but ranking among the countries with the lowest LPG consumption. He assured the stakeholders of President Bola Tinubu’s commitment to increasing the penetration of gas usage across the country.
“The government is determined to ensure that our gas resources are utilized effectively to benefit all Nigerians,” Ekpo stated. “This ban on LPG exports is just one step in a broader strategy to deepen gas penetration and make it more accessible and affordable for our people.”
