Cooking Gas Domestic Price Crash As Exportation Get Banned

 

The ban imposed by the Federal Government on the exportation of Liquefied Petroleum Gas, commonly referred to as cooking gas, has precipitated a significant decline in its price, plummeting from approximately N1,500 per kilogram to around N900/kg, as revealed by LPG dealers during a meeting on Wednesday in Abuja, under the umbrella of the Nigerian Association of Liquefied Petroleum Gas Marketers.

This governmental directive, implemented on February 22, 2024, aimed at boosting the domestic supply of LPG to mitigate the price surge. The restriction mandates LPG producers and industry stakeholders to cease exporting the commodity outside Nigeria. During the meeting with the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, the National President of NALPGAM, Oladapo Olatunbosun, expressed gratitude for the minister's decisive action in enforcing the localization of LPG production, attributing it to the subsequent price reduction and stability in the local market.

Olatunbosun further recalled an earlier engagement in February, where concerns were raised regarding the substantial exportation of gas by international oil companies operating in Nigeria. The advocacy emphasized that retaining these gas volumes domestically would obviate the need for costly imports, thus ensuring price equilibrium within the local market. Consequently, the intervention by the Federal Government led to a notable reduction in the price of LPG, from N20 million to N15 million per 20 metric tonnes, translating to a retail price decline from N1,400 – N1,500 per kilogram to between N900 – N1,000 per kilogram.

Acknowledging the positive impact of the export ban, Olatunbosun commended the government for addressing the market challenges, prompting a resurgence in consumer confidence and usage of LPG. Ekpo, in response, lamented Nigeria's paradoxical status as a major gas producer with low domestic consumption rates. He reassured stakeholders of President Bola Tinubu's commitment to enhancing gas utilization nationwide, commending the cooperative efforts of marketers in aligning prices with prevailing market dynamics.

Ekpo reiterated the government's stance on prioritizing domestic gas supply, citing ongoing engagements with regulatory bodies and major gas producers to bolster domestic availability and affordability. The Minister underscored the significance of collaborative problem-solving to overcome industry challenges, emphasizing the administration's resolve to foster a conducive environment for sustainable growth within the gas sector.