Amid rising domestic LPG Prices, Nigeria curbed exports to strengthen supplies

The Federal Government of Nigeria has implemented a ban on the export of Liquefied Petroleum Gas (LPG) to combat the escalating costs of cooking gas. This restriction affects the Nigerian National Petroleum Company (NNPC) and other domestic producers. Announced by Mr. Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), during a meeting in Abuja, the ban is designed to increase the availability of LPG for local consumption, thereby reducing its cost to consumers.

Louis Ibah, the Minister's spokesperson, explained that this decision comes in response to the significant price increases impacting Nigerian households and businesses. The government has directed that all LPG produced domestically should be retained within the country from the effective date of the ban. Producers who fail to comply and continue exports must import equivalent volumes of LPG at prices that reflect domestic production costs.

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been instructed to establish a new LPG pricing framework within 90 days, linking prices to domestic production costs instead of international market rates. Furthermore, as a longer-term strategy, Mr. Ekpo disclosed plans to develop new facilities for blending, storing, and distributing LPG within the next 12 months, aiming to stabilize supply and prices before any exports are resumed.

These initiatives are part of broader efforts by the government to protect citizens from the economic impacts of high LPG prices. However, experts remain cautious, noting that without significant enhancements to infrastructure and local production capabilities, LPG prices may continue to fluctuate. The effectiveness of these measures will depend on continued regulatory oversight and investment in the LPG sector.