[ICYMI] Domestic Cooking Gas Prices Plunge After Export Ban – Market Impact

[ICYMI] Domestic Cooking Gas Prices Plunge After Export Ban – Market Impact

The recent prohibition by the Federal Government on the export of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, has significantly driven down its market price from approximately N1,500 per kilogram to about N900/kg, according to statements from LPG dealers.

During a visit to the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, in Abuja, the Nigerian Association of Liquefied Petroleum Gas Marketers highlighted the impact of this policy. The ban, implemented in response to rising local prices, has aimed to boost domestic supply.

Previously reported by The PUNCH on February 22, 2024, the ban targeted LPG producers and stakeholders, mandating them to cease all exports to focus on meeting local demand. The move was welcomed by industry leaders, including NALPGAM’s National President, Oladapo Olatunbosun, who praised the government’s initiative for stabilizing prices and reducing reliance on imports.

Olatunbosun emphasized that the policy has already led to a notable reduction in the cost of LPG, citing drops in both wholesale and retail prices. He expressed gratitude for the government’s responsiveness to industry concerns and highlighted increased consumer accessibility to the commodity.

In response, Minister Ekpo affirmed the government’s commitment to expanding domestic gas utilization, underscoring President Bola Tinubu’s strategic vision for the sector. He acknowledged the collaboration of industry stakeholders in achieving price stability following the export ban.

Ekpo reassured stakeholders of ongoing efforts to optimize Nigeria’s gas resources for local benefit, promising continued engagement with key industry players to address operational challenges and enhance supply reliability.

The minister’s proactive stance underscores broader efforts to strengthen Nigeria’s energy sector, ensuring sustainable availability and affordability of essential commodities like LPG.