FG bans export of cooking gas to reduce cost

In an attempt to boost the quantity of Liquefied Petroleum Gas (also known as cooking gas) domestically and justify a price collapse, the Federal Government has outlawed its export.

Following the recent increase in the price of cooking gas, it was reported on Thursday that major players in the business and Nigerian makers of LPG had received orders to cease exporting the product outside of the country.

According to research, it now costs roughly N18,000 to replenish a 12.5 kg cooking gas cylinder in Abuja, Lagos, Kano, and a few other states. In particular, a product that sold for less than N9,000 in November of last year was priced at N17,500 in Abuja on Thursday.

Based on continuous price increases, LPG dealers operating under the Nigerian Association of Liquefied Petroleum Gas Marketers had projected in the middle of the previous year that a 12.5kg cylinder would cost N18,000.

In order to address this, the Nigerian Midstream and Downstream Petroleum Regulatory Authority's Chief Executive, Farouk Ahmed, formed a committee in November 2023 under the direction of Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas).

However, the price of the item has continued to rise as of today (Thursday), as a growing number of LPG customers are progressively switching to charcoal.

Nonetheless, Ekpo claimed that the Federal Government has ordered LPG manufacturers to cease exporting the commodity while addressing on the fringes of the internal stakeholders' meeting in Abuja on Thursday.

He cited a number of multinational oil producers, such as Mobil, Shell, and Chevron, and emphasised that the government was negotiating with them to drive down the cost of cooking gas.