• Tuesday, April 16, 2024
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BusinessDay

FG suspends exportation of cooking gas in bid to tame rising prices

Here’s why Nigerians may pay more for cooking gas in festive period

In a move aimed at curbing the rising cost of cooking gas, the Federal Government of Nigeria has announced the immediate suspension of Liquefied Petroleum Gas (LPG) exports.

Ekperikpe Ekpo, the minister of state for petroleum resources announced the suspension of LPG exportation during an “Internal Stakeholders’ Workshop” held in Abuja.

He said the move is part of a strategic effort to boost the availability of LPG within the domestic market, to alleviate the financial burden on consumers due to surging prices.

Ekpo revealed there are ongoing discussions with critical stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as well as major operators like Mobil, Chevron, and Shell.

According to him, the discussions are aimed at collaboratively addressing challenges faced by consumers and ensuring a more stable and affordable cooking gas market.

The minister emphasised the importance of halting the exportation of locally produced LPG, intending to keep the entire production within the country.

He added that by doing so, the government anticipates an increase in the volume available for the domestic market, potentially leading to a reduction in prices and providing relief to consumers grappling with the high cost of cooking gas.

“There is that hope that things will turn around. We don’t need to make noise about it,” he said.

BusinessDay reports showed Nigerians are feeling the heat, not just from their stoves, but from their wallets as the price of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, skyrocketed to N1,300 per kilogram, early this month

This sharp increase, up from less than N500 in 2018, sent shockwaves through households nationwide, adding another layer of burden to an already strained population.