The Federal Government of Nigeria has taken action to reduce the high cost of cooking gas. Starting November 1, 2024, the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and gas producers must stop exporting Liquefied Petroleum Gas (LPG). The move was announced by the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, during a meeting with stakeholders on October 22, 2024, in Abuja.
Mr. Ekpo said the high cost of cooking gas has caused hardship for many Nigerians. He explained that it doesn’t make sense for Nigerians to pay high prices for something that is produced in the country. He criticized the current system where gas prices are linked to global markets like the Americas and Asia, even though Nigeria produces LPG domestically.
From November 1, 2024, LPG producers must stop exporting gas or import the same amount they export at fair prices. This change will help keep more gas in Nigeria and reduce costs for consumers.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been instructed to create a new pricing system within 90 days. The new system will set gas prices based on local production costs instead of global market rates.
In the long run, the government plans to build new facilities to store, blend, and distribute LPG in Nigeria within 12 months. This will stop the need for exports until there is enough gas to meet demand and keep prices stable.
These changes are meant to make life easier for Nigerians who are struggling with rising living costs. By keeping more cooking gas in the country, the government aims to make it more affordable for everyone.
0 Comments