FG mulls new pricing framework to crash prices of cooking gas

The federal government, through the ministry of petroleum resources (gas), in a bid to crash the price of Liquefied Petroleum Gas (cooking gas), has directed relevant authorities, stakeholders on new domestic pricing framework.

Ekperikpe Ekpo, the Minister of petroleum resources (gas) who met with industry stakeholders in Abuja on Thursday, directed the Nigerian Midstream Downstream Petroleum Regulatory Authority to engage stakeholders to create a domestic LPG pricing framework within 90 days, indexing price to cost of in-country production, rather than the current practice of indexing against external markets, such as the Americas and Far East Asia.

The minister, in a statement signed by his spokesman Louis Ibah, said that the directive is aimed to address the skyrocketing price of the product which currently is currently sold gor as high as N1,450 per kg and its attendant hardship on Nigerians.

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He also directed that with effect from November 1, 2024, the Nigerian National Petroleum Company Limited and LPG producers to stop exporting LPG produced in-country, or import equivalent volumes of LPG exported at cost reflective prices.

“For the Long-Term Solution, wthin 12 months, facilities will be developed to blend, store, and deliver LPG, ending exports until the market achieves sufficiency and price stability.

“The new measures aim to improve availability and ensure affordability to protect Nigerians from the economic hardship caused by LPG price hike.

“Recall that in a bold move to tackle the soaring price of cooking gas, the Gas Minister had established a high-level committee in November 2023, led by the Authority Chief Executive of the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), Mr. Farouk Ahmed, and comprising key stakeholders in the LPG value chain.

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However, despite this effort to address the issue, prices have continued to fluctuate, recently soaring to N1,500 from an average of N1,100 – N1,250 per kg,” he added.