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LPG: Nigerian Government’s ban on cooking gas export reducing product prices –Marketers

Cooking Gas Cylinders

*Cooking gas (LPG) dealers under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers applaud the Federal Government for a ban on further exportation of the product, stating the move has resulted in considerable reductions in retail prices of cooking gas across the West African country

Alexander Davis | ConsumerConnect

Cooking gas dealers under the aegis of the Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) have applauded the Federal Government for a ban on further export of Liquefied Petroleum Gas (LPG), otherwise known as cooking gas.

The LPG dealers recently affirmed the government’s decisive move February 2024 had resulted in considerable reductions in product retail prices from about N1,500 per kilogram to around N900/kg in the country.

ConsumerConnect reports the LPG dealers disclosed the development during a courtesy visit on Ekperikpe Ekpo, Honourable Minister of State for Petroleum Resources (Gas), Wednesday, June 5, 2024, in Abuja, FCT.

The Nigerian Government, February this year, had announced a ban on the exportation of LPG in order to increase domestic supplies, encourage more consumers to embrace cooking gas utilisation, and ultimately, crash LPG prices in the economy.

The government at the time had mandated the LPG producers and key industry stakeholders to halt product exportation, especially in view of the comparatively high costs of cooking gas.

Speaking during the Association’s visit to the Minister’s office Wednesday, Oladapo Olatunbosun, National President of NALPGAM, lauded Ekpo for the courage in ordering the domestication of all LPG produced within the country.

Olatunbosun noted that the policy has induced some reduction and stabilisation of the product prices in the domestic market.

Government walking its talk on domestic cooking gas utilisation: NALPGAM National President

Louis Ibah, media aide to the Minister also stated how Olatunbosun recalled that during a stakeholders’ consultative forum February 2024, in Abuja, the Association had drawn the Minister’s attention to the fact that some International Oil Companies (IOCs) operating in Nigeria had been exporting huge volumes of gas.

The National President of NALPGAM further stated if those volumes were to be available for the domestic market, there would be no need to import LPG at exorbitant rates as the product would be available, and there would be price stability in the cooking gas market in Nigeria.

LPG dealers commend Minister Ekpo

Olatunbosun, therefore, applauded the Federal Government for heeding to their plea, noting the government’s intervention has made the price of LPG that hitherto was sold for N20 million per 20 metric tonnes (MT) to reduced to N15 million.

The statement as well indicated that the cooling gas dealers said there is a corresponding decrease in the average retail price from N1,400–N1,500 per kilogram to between N900 and N1,000 per kilogram.

“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 soar in prices will be addressed, and indeed, you have taken steps to walk the talk.

“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,” said Olatunbosun.

He added: “People who abandoned their gas cylinders due to price hike are coming back and we are confident that by the time the Naira gains more weight, consumers will enjoy better price of LPG.”

In his remarks during the LPG dealers’ visit, Ekpo decried the situation where Nigeria, a major gas producer, was ranked among countries with the lowest consumers of the product.

The Minister of State for Petroleum Resources (Gas) also assured his guests of President Bola Ahmed Tinubu’s commitment to deepening the cooking gas penetration across the country.

He commended the product marketers for their cooperation in reducing retail prices to reflect current realities, following the ban on the export of LPG.

Ekpo further stated: “We would not have gone that far without your cooperation and support.

“We are working towards ensuring that our vast gas resources is available domestically at the right price for the public in line with President Bola Tinubu’s aspiration for the sector and economy.”

The Minister as well noted that the Federal Government, February this year, had asked LPG producers to halt the export of the commodity.

“With the issue of gas, you have seen the demonstration of the Federal Government by withdrawing all taxes and levies from the importation of gas-related equipment. It is a big incentive.

“On the issue of LPG (cooking gas), we are interacting with the critical sectors to ensure that there is no exportation of LPG. All LPG produced within the country will have to be domesticated.

“And when this is done, the volume will increase and, of course, the price will automatically crash,” Ekpo said.

He stated: “I’m in contact with the regulator, NMDPRA; we have meetings almost daily with the producers of the gas like Mobil, Chevron and Shell.

“So, there is that hope that things will turn around.

“And that is also why we are having this engagement to know exactly what the problems are so that we can address them once and for all.”

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