– Advertisement –
The federal government has ordered the Nigerian National Petroleum Company Ltd. (NNPC Ltd.) and Liquefied Petroleum Gas (LPG) producers to halt the export of LPG or cooking gas from November 1 to reduce prices across the country.
The decision was made public through a statement issued by Louis Ibah, the Minister’s spokesman, following a high-level meeting in Abuja between government officials and stakeholders in the LPG value chain.
The dialogue focused on the persistent increase in gas prices and the severe impact on households across the country.
– Advertisement –
Join Our WhatsApp Group
Don’t miss out on any real-time information. Join our WhatsApp group to stay updated.
“On the short-term solution, with effect from Nov. 1, 2024, NNPC Ltd. And LPG producers are to stop exporting LPG produced in-country or import equivalent volumes of LPG exported at cost-reflective prices.
“On pricing framework, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), will engage stakeholders to create a domestic LPG pricing framework within 90 days indexing price to the cost of in-country production.
“This is rather than the current practice of indexing against external markets, such as the Americas and Far East Asia, whereas the commodity is produced in-country and Nigerians are required to pay a higher price for an essential commodity the country is naturally endowed with.
“On long-term solution, within 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability,” he said.
– Advertisement –
Ekpo explained that the directives were a step towards addressing the underlying challenges and ensuring that Nigerians have access to affordable cooking gas.
He noted that the new measures would enhance availability and affordability to shield Nigerians from the economic hardship caused by the rise in LPG prices.
Recall that, in a bold move to curb the soaring prices, the minister had established a high-level committee in November 2023, led by the Chief Executive of NMDPRA, Mr. Farouk Ahmed, and comprising key stakeholders in the LPG value chain.
However, despite efforts to stabilize the market, prices have remained unstable, recently climbing to N1,500 per kg from an average of N1,100 – N1,250.
Many residents of the Federal Capital Territory (FCT) raised their concerns in an interview with journalists in Abuja last Sunday.
Nnamdi Opara, a businessman and father of two, said he had to adjust his spending to accommodate the increase in cooking gas prices.
– Advertisement –
“I have a 12.5kg cylinder but have not filled it to that capacity for some time. So I buy like 5kg or a little more depending on the money I have. If I use just N16,000 to buy gas, then I won’t be able to meet other needs; it is not like income has increased, and we all know the situation of the economy,” he said.
Join Our WhatsApp Group
Don’t miss out on any real-time information. Join our WhatsApp group to stay updated.
Memunat Ogunyemi, a civil servant, said the increased cooking gas price had made some people return to traditional cooking options.
“I remember when the government was sensitising Nigerians on the need to stop deforestation and embrace the use of cooking gas.
“How many people can afford to buy it coupled with other expenses like food and transportation? My mum has gone back to using charcoal, and I also use a charcoal stove as an alternative now,” said Ms Ogunyemi.
Ms Ogunyemi added that the prices of accessories like cylinders, hose regulators, etc, had also increased.
Ella Joshua, a nurse and mother of three, said she could no longer afford to fill her 12.5kg cooking gas because of the continuous price increase.
“I have not been filling my 12.5kg for a long time because I can not afford it; I only manage to fill 6kg per time.
“I resort to cooking with charcoal if I have many dishes/food to cook, but unfortunately, the price of charcoal is skyrocketing too as a bag is currently sold at N10,000,” she said.
Similarly, Happiness John, a businesswoman, said she had to use a charcoal stove as an alternative because of the increasing cost of cooking gas.
“I cannot afford to use gas alone to cook, not when the present cost of 12.5kg is selling for N16,500 now in my area.”
Kareem Mohammed, a manager at a gas station, attributed the increase in cooking gas to low supply, adding that the local production was not sufficient to meet the demand.
“The federal government should address this issue of cooking gas production to ensure we produce enough here in Nigeria to meet the demands of the people,” he said.
The National Assembly recently called on the federal government to reverse the recently increased cooking gas and petrol prices.
Experts have said the federal government needs to boost local production of LPG and address the foreign exchange issues to make importing the product cheaper so it becomes more affordable and accessible to Nigerians.
Intel Region News is on WhatsApp!
Share News with us via Email: [email protected]
:
– Advertisement –
Leave a Reply